I am introducing two new stocks to the Perpetual Income Portfolio Club today. We are moving on from Applied Materials (AMAT) and Target (TGT) and replacing them with Corning (GLW) and Starbucks (SBUX).
While AMAT and TGT are both great companies, I believe our new additions offer much better income generation potential.
I recorded a video outlining my case for GLW and SBUX. Please take a few minutes to watch it here.
After you do, I am recommending we sell puts on the stocks.
I am also recommending a call to sell on Chewy (CHWY), as we were assigned shares last week.
If you are not currently in a CHWY position, you will need to buy 100 shares of the stock first for every call you plan to sell to make sure your position is covered. Never sell an uncovered call.
Note that no action is needed on our Apple (AAPL) Jan Monthly (1/15) 130 Put at this time.
CHWY Uncovered Shares
Current Stock Price: $103.49
Action: Sell to open the CHWY Jan Monthly (1/15) 105 Call
Current Option Price: $2.09-$2.20
Recommended Limit: Set your initial limit order at $2.14
Current Stock Price: $37.80
Action: Sell to open the GLW Jan Monthly (1/15) 37.50 Put
Current Option Price: $0.31-$0.35
Recommended Limit: Set your initial limit order at $0.33
Current Stock Price: $103.42
Action: Sell to open the SBUX Jan Monthly (1/15) 103 Put
Current Option Price: $0.85-$0.89
Recommended Limit: Set your initial limit order at $0.87
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, GLW, CHWY and SBUX.