Underperforming Chipmaker Offers Contrarian AI Play
While Nvidia and other big-name AI stocks may get the most attention from investors, who are driving their share prices to astronomical heights, there are some under-the-radar plays that offer decent implied volatility and the chance for option sellers to generate attractive premium.
Find out how Options Income Weekly members recently cashed in on one such name with an underperforming chipmaker that’s been lagging its sector and the broader market this year.
How We’ve Been Cashing In On The GLP-1 Craze
The booming market for weight-loss drugs, particularly GLP-1 agonists, have led to substantial gains in drugmakers Novo Nordisk (NVO) and Eli Lilly (LLY). The latter is seeing its share price approach the $1,000 level, putting it out of reach for most investors.
But we’ve been able to generate thousands of dollars from LLY over the past year and boost our rates of return using a simple options-selling strategy.
Simple Strategy Yields 98% Win Rate in H1
We’ve closed 50 winning trades and just one loser in Options Income Weekly so far in 2024, generating consistent income despite the low-volatility environment.
Let’s take a closer look at our results and how we’ve been navigating the market this year.
It’s Nvidia’s Market. We’re Just Trading In It.
As goes Nvidia, so goes the market these days it seems, with the stock dragging down the S&P 500 late last week.
But 5K Challenge members were able to capitalize on the runup in shares before the stock’s recent pullback with two back-to-back one-day trades.
We Just Earned $1K+ Profits on 2 Tech Faves
Income Masters members have booked three winners in a row on Microsoft (MSFT), pocketing more than $1,500 in cash in less than a month.
Meanwhile, 5K Challenge members have used the same strategy on AI darling Nvidia (NVDA) and earned $1,053 in profits in less than a week.
Find out how they are doing it here.
Member Request Fuels Options Win
A member request led us to investigate a biotech company as a potential income opportunity. Not only did we like what we uncovered, but a larger-than-expected market move led to a profitable exit on the trade in less than 24 hours.
Find out which company we traded here.
45 DTE: The Sweet Spot for Options?
For short-term option traders, 45 days to expiration might sound like a lifetime. But research shows some benefits associated with this time frame.
Find out how we’ve been utilizing longer-dated options in the pursuit of short-term profits.
Finding Income in Unlikely Places
The low-volatility environment has been a challenge for option sellers. In our Options Income Weekly program, we typically focus on selling puts and calls on established stocks.
However, with options premium hard to come by, we’ve had to get creative…
We Stayed in May and Earned $929 in Cash
Options Income Weekly members earned twice as much cash in May as they did in April, as the broader market rebounded. However, one of those winning trades was on an underperforming tech stock, illustrating the ability of option sellers to take advantage of post-earnings overreactions.
Find out how a selective and disciplined approach led to a consistent income stream and why we’re prepared for what lies ahead.
Finding Opportunities Amid Record-Low VIX
Volatility is near record-low levels, which is prompting us to add new tactics to our trading arsenal. Find out how Income Masters members locked in a 5.3% return on Microsoft (MSFT) — in just three days — by utilizing a neutral-to-bullish strategy that benefits from time decay.
