Let’s roll our Apple (AAPL) call out one week to generate more income.
If you are not currently in an AAPL position, please sit this trade out. I will alert you when it is time to put new money to work.
General Motors (GM) is rallying after delivering a strong earnings report and guidance despite chip shortages disrupting production. I am recommending a put to sell.
Note that no action is needed on our Chewy (CHWY) May Week Two (5/14) 80 Call or Twitter (TWTR) May Week Two (5/14) 60 Call at this time.
AAPL May Week One (5/7) 128 Call
Current Stock Price: $129.29
- Buy to close the AAPL May Week One (5/7) 128 Call for around $1.79
- Sell to open the AAPL May Week Two (5/14) 128 Call for around $2.62
- Set your initial credit limit at $0.83, but adjust as needed to roll today
Current Stock Price: $57.37
Action: Sell to open the GM May Week Two (5/14) 58 Put
Current Option Price: $1.57-$1.61
Recommended Limit: Set your initial limit order at $1.59
Note: Option prices tend to move around more than stock prices, so the prices you see when you receive this alert may be different than what I am seeing now. The most frequent concern I hear from members is “missing the trade” — i.e., not getting the limit price I recommend within a few minutes of placing the order.
It is important to be patient with these trades. Begin with my recommended limit for each trade, and if you need to adjust it slightly in a few hours to get in, you can do so.
The Perpetual Income Engine strategy involves selling options every week, so while a few pennies can be important to your short-term return, getting the trade executed is more important over the long run. Use your judgment as to when to adjust the trade after you place your initial order, but give it some time before doing so.
Disclosure: I have positions or trade in and out of AAPL, CHWY, GM and TWTR.