While there was no Options Income Blueprint Live Trading Session this week, we are putting on two new positions.
The first is on home solar system provider Sunrun (RUN), which is one of our core stocks. We’ve successfully traded it four times since late June, booking $292 in income. Note that the stock only has monthly options available.
The second trade is on Sonos (SONO). The designer and manufacturer of wireless home sound systems is a recent addition to our Options Income Blueprint universe, our first with trade on the stock in late August. SONO is one of my favorite “home cocoon” stocks and a play on people’s growing resistance to paying monthly fees for streaming services.
Please do not chase the trades by accepting less premium than the “go as low as” price recommended below. Work your limit orders but exercise patience and let the trades come to you.
Current Stock Price: $46.08
Action: Sell to open the RUN Sep Monthly (9/17) 45 Put
Current Option Price: $1.20-$1.30
Recommended Limit: Set your initial limit order at $1.25. You can go as low as $1.05, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Sept. 17
Potential Rate of Return: 2.8% in 10 days, or 101% on an annualized basis, if this option expires worthless
Current Stock Price: $38.90
Action: Sell to open the SONO Sep Week Two (9/10) 38.50 Put
Current Option Price: $0.37-$0.44
Recommended Limit: Set your initial limit order at $0.40. You can go as low as $0.30, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Sept. 10
Potential Rate of Return: 1% in three days, or 126% on an annualized basis, if this option expires worthless