General Motors (GM) sold off early this week, stabilized and then got hit again when the broader market fell sharply on Thursday. It is bouncing back today due to a bullish analyst recommendation that said the company should be valued as an electric vehicle stock rather than a traditional automaker.
I am recommending we roll our put to the same strike for next week.
Current Stock Price: $58.11
Action:
- Buy to close the GM Jul Week Two (7/9) 60 Put for around $1.90
- Sell to open the GM Jul Monthly (7/16) 60 Put for around $2.22
- Set your initial credit limit at $0.32, but adjust as needed to roll today
And here’s where we stand with our other Perpetual Income Portfolio Club positions heading into the weekend.
AAPL Jul Monthly (7/16) 140 Put
Apple (AAPL) continues to grind its way up, and we are generating a good deal of cash selling puts with strikes comfortably below the share price.
Our put is currently on track to expire worthless, but we have another week to go until expiration.
Current Stock Price: $145.16
Action: No action is needed at this time
CHWY Jul Monthly (7/16) 80 Put
Chewy (CHWY) continued to exhibit its telltale volatility this week. I expect $80 to be the new floor and for shares to inch their way higher in the coming days and weeks. Premiums are huge, which is great for option sellers.
Our put is currently on track to expire worthless, but we have another week to go until expiration.
Current Stock Price: $82.71
Action: No action is needed at this time
TWTR Jul Monthly (7/16) 67.50 Put
Twitter (TWTR) was caught up in this week’s broader market sell-off but appears to have found support at the $67 level. I expect the stock to trade in a tight range with a short-term ceiling of $69.50-$70.
Our put is currently on track to expire worthless, but we have another week to go until expiration.
Current Stock Price: $68.24
Action: No action is needed at this time
Disclosure: I have positions or trade in and out of AAPL, CHWY, GM and TWTR.