Charles Schwab (SCHW) is up more than 9% since the company reported better-than-expected earnings last week on record revenue, helped by rising interest rates and more retail trading activity.
Let’s put some capital to work by selling a put.
Current Stock Price: $73.77
Action: Sell to open the SCHW Nov Week One (11/4) 71 Put
Current Option Price: $0.68-$0.73
Recommended Limit: Set your initial limit order at $0.70. You can go as low as $0.63, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Nov. 4
Potential Rate of Return: 1% in nine days, or 40% annualized, if this option expires worthless