Our Apple (AAPL), Chewy (CHWY) and Twitter (TWTR) shares were called away on Friday, and our General Motors (GM) put expired worthless.
I am recommending new puts to sell on AAPL, GM and TWTR.
CHWY is expected to report earnings on Thursday, so I am holding off on putting on a new position until after they announcement.
Current Stock Price: $124.97
Action: Sell to open the AAPL Jun Week Two (6/11) 124 Put
Current Option Price: $0.95-$0.96
Recommended Limit: Set your initial credit limit at $0.95
Current Stock Price: $63.18
Action: Sell to open the GM Jun Week Two (6/11) 62 Put
Current Option Price: $0.48-$0.49
Recommended Limit: Set your initial credit limit at $0.48
Current Stock Price: $58.58
Action: Sell to open the TWTR Jun Week Two (6/11) 57.50 Put
Current Option Price: $0.53-$0.55
Recommended Limit: Set your initial credit limit at $0.54
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.