In the latest Options Income Weekly, I discuss last week’s results, recent market action and how we booked a triple-digit annualized rate of return on a trade open for a matter of hours.
In the previous Options Income Weekly, I discussed popular TV streaming platform operator Roku (ROKU) at length. Options Income Blueprint members had just booked a profit by buying back the put we sold early, which boosted members’ rate of return from a potential 29% annualized (had they held through expiration) to 51%.
Last week, I recommended another trade on ROKU hoping to repeat our recent success with the stock. This time, I told members to sell the ROKU Jul Week Four (7/22) 75 Put, which was nearly 13% out of the money, for $0.44, or $44 per contract.
Had we held through expiration and the put expired worthless, we would have made 0.6% in four days, or 54% annualized. But when we sold the put shortly after 11 a.m. Eastern on July 19, I warned members that this trade might be a bit unusual. I told them to watch for a closeout alert that could come within a matter of hours if shares of Roku continued to move higher that day.
That’s exactly what happened. Shortly before 2 p.m. Eastern, with ROKU up another 3%, the premium of the put we sold had been cut in half. I issued an alert to close the position and members booked a profit of $0.22, or $22 per contract.
Since they had put up $7,500 per contract to secure the trade, this meant they earned a 0.3% return on their cash in just three hours! This one-day trade yielded an annualized rate of return of 107% and we freed up capital for new opportunities.
We’re not day traders at Options Income Blueprint, but we’re also not the kind of traders who overlook an excellent profit in a matter of hours.
This week, I’ll be waiting until Thursday to put new money to work. I want to see how the market reacts to central banker comments and news of an interest rate increase that will come following the conclusion of the Federal Reserve meeting on Wednesday.
But even with the Fed meeting out of the way, I’ll have no qualms about continuing to book profits early. In this market, it pays to trade aggressively and nimbly while avoiding any unnecessary risks.
As we look for trade ideas, the U.S. government just handed over a potential big win for one industry. Will we see a boost to the clean energy stocks after the Senate voted to unlock nearly $370 billion this past weekend?
What does all of this mean for the future? Are the jobs reports good or bad?
Keep reading to find out the key levels for the S&P 500 and what reports are likely to move the markets this week.
We could see another strong month ahead for tech and there’s one symbol that you may want to add to your trading list.
Keep reading to learn more about the one symbol that could have a strong August.
As the markets remain relatively flat, theta decay is your friend this week so I thought I’d write about a trade that has been showing remarkable accuracy lately.
This one trade has a 90% accuracy rate. Keep reading to find out more.
It wasn’t too long ago that the market was reacting (or overreacting) to every piece of news that was published. Over the last month and a half, the markets have settled down some. That can be seen from the VIX (volatility index) which has been steadily decreasing since the mid-June market lows.
The Mediots Are At It Again
As we’ve explained over the last few months, it was likely that the U.S. economy would meet the ‘technical’ definition of a recession (two or more consecutive quarters of negative GDP).
It’s official, the Fed increased interest rates by 75 basis points for a second straight meeting. Inflation remains high, job growth is slowing, and consumer confidence is at historic lows.
Maybe that’s why investors are rushing toward dividend investing to protect their portfolios. With a recession likely on the horizon, if we’re not there already, and dividend payouts projected to increase throughout 2022, there are three quality companies you should consider for your portfolio.
What can learn from the major companies that reported earnings?
Alphabet (GOOG/L) released earnings and missed overall, but their ad revenue beat expectations so their stock went up after hours. Microsoft (MSFT) missed on cloud revenue and ad revenue and their stock went down. Great.
267 Kentlands Blvd #225
Gaithersburg, MD 20878
P. (866) 257-3008
(Monday-Friday 9:00 AM-5:00 PM EST)
Publisher of actionable and proven strategies and tactics to help investors build wealth and reach seven-figure portfolios.
Get notified about new articles, special events, training, and much more
Leave your info below to get more options and trading ideas to your inbox
Yes, send me news to my inbox.