Twitter (TWTR) is running up following the release of better-than-expected second-quarter earnings. Revenue grew at the fastest pace since 2014 at 74% year over year. It’s true that last year’s second quarter was depressed because of the pandemic, but this year’s results still easily beat Wall Street’s estimates.
We sat this week out to avoid earnings risk. Now that the report is out of the way, I am recommending a well-out-of-the-money put since there are signs that some of the rally is due to a short squeeze.
Current Stock Price: $72.53
Action: Sell to open the TWTR Jul Week Five (7/30) 68 Put
Current Option Price: $0.41-$0.43
Recommended Limit: Set your initial limit order at $0.42, but adjust as needed to sell a put today
And here’s where we stand with our other Perpetual Income Portfolio Club positions heading into the weekend.
Apple (AAPL) is up around 1% this week, but I want to continue to sit out of the stock until after the company announces earnings next week.
Current Stock Price: $147.88
Action: No action is needed at this time
CHWY Jul Week Four (7/23) 80 Put
Chewy (CHWY) recovered all of last week’s losses and then some this week. Our put is on track to expire worthless, and we will sell another one next week.
Current Stock Price: $86.44
Action: Watch put expire worthless
GM Jul Week Four (7/23) 60 Put
General Motors (GM) recovered some of last week’s losses but is struggling to truly regain momentum. Rolling this put will bring us little, if any, cash. So, I am recommending we accept shares and will sell a call against them next week.
Current Stock Price: $55.28
Action: Accept shares
Disclosure: I have positions or trade in and out of AAPL, CHWY, GM and TWTR.