Don’t Pass Up the Cash

Michael Shulman

It was a good 5 days for “weekly paycheck” option sellers.

We closed 4 “weekly paycheck” trades last week for almost $300 trading one contract.

Western Digital – [stock_market_widget type=”inline” symbol=”WDC” template=”basic” color=”default” refresh_frequency=”0″], the Apple ecosystem stock, led the way. Two weeks ago we sold a WDC $87 monthly put for a generous $2.75 per share or $275 per contract.

Western Digital’s stock began trading up after news that rival Toshiba was interested in a joint investment in chips. So, we closed the trade one week early buying back our WDC option for $1.20, which netted us a nice $1.55 or $155 per contract of profit for 12 trading days.

It might look like we exited the trade too early but when an $82 stock makes a 5% move in less then 2 weeks, you don’t pass up the cash.

Micron Technology – [stock_market_widget type=”inline” symbol=”MU” template=”basic” color=”default” refresh_frequency=”0″] delivered great earnings sending the stock on a post-earnings tear and volatility through the roof. As option sellers, that’s great for capturing elevated premiums.

So we sold a 3-day MU 39 weekly put for .31 per share or $31 per contract.

The next day, MU stock continued to climb and as we expected, our put premium dropped dramatically.

We expected MU to continue to move up so we bought back our MU 39 weekly put for $0.10 and sold next week’s MU 39 put for $0.57 this time or $57 a contract.

We now had $0.78 or $78 in cash.

MU kept going up the following week and 5 days later our MU put position expired worthless and we kept $78 in cash.

Another good example of how we added even more cash to a “weekly option” position that was moving our favor.

And finally, we sold Applied Materials – [stock_market_widget type=”inline” symbol=”AMAT” template=”basic” color=”default” refresh_frequency=”0″] and First Solar – [stock_market_widget type=”inline” symbol=”FSLR” template=”basic” color=”default” refresh_frequency=”0″] weekly puts again and in 2 days closed both positions out for another $0.61 or $61 per contract.

Had you been trading 3 contracts (as many of our Options Income Members do) on all 4 trades you would’ve walked away over $900 of cash income last week.

You can join us starting this week. My Options Income Blueprint members are already working our next “weekly paycheck” trade for this week. Start collecting cash immediately when you take my Options Income Blueprint 60-Day Test Drive.


About The Author

Michael Shulman is a 30 Year Veteran of the financial markets – as a trader, a financial analyst, a financial writer and most recently as an educator.

Mr. Shulman made his first option trade in 1985 – COMPAQ Computer calls – a position that expired worthless. His second trade broke even; the third brought him a year’s salary, a near twenty to one return on his investment. He has never looked back. He entered the financial publishing business formally in 2001 as director of research for ChangeWave Research’s institutional research business and as the writer and editor of Hedge Fund Investing.

He has published two books – Sell Short and Made in America – both of which can be found on Amazon.com, and he is a frequent contributor to reputable financial sites like Seeking Alpha, MSN, MainStreetInvestor, and Traders Reserve.

Most importantly, since 2010, he has dedicated himself to teaching income investors how to get more income from their portfolios using simple yet safe options selling strategies which produce income every week. This approach was developed from the ground up in Mr. Shulman’s own accounts, his goal to develop a strategy that cannot be replicated by institutional investors of any size and therefore independent of fads and trends that change too often to provide a consistent approach for individual traders.

His trade recommendations in his Options Income Blueprint, Perpetual Income Portfolio Club and Income Masters services maintain a 98% success ratio, meaning his trades produce the expected income 98% of the time. No one’s perfect.