Introductory Comments:
For Mon Feb 28 2022 stay with stocks you would own or at least roll lower if the stock fell below the short put strike sold. Sell fewer put contracts which makes repairing trades easier. Staying in cash is also a strategy during periods of higher volatility and uncertainty.
Stay In Your Comfort Zone
Remember to stay within your comfort zone for the trades listed. When viewing the stocks on the list, remember that these are ideas. Nothing is “written in stone”. Trades have to be flexible to be successful. The prices I quote are from the prior trading day’s close and prices can change quickly once trading resumes, so they act as a guide for what I hope to earn. It is important to weigh the risk of capital against the earnings that can be made before deciding on what stocks to trade from the watch list.
Buy To Close Early
Also remember to buy to close trades early and don’t leave trades open for a few pennies of profit. Instead, close trades, reduce risk to capital and look for new trades to continue to grow profits.
Make Your Own Watch List
When considering trade opportunities from the FullyInformed Watch List, make your own list first and then review the FullyInformed watch list to pick those stocks that suit your comfort level and meet your portfolio criteria. For example perhaps you prefer just dividend paying stocks in case stocks do move lower. Other investors may be looking for those stocks that pay out good put premiums but are strong enough not to pullback for a short period of time. Make sure you have a plan that focuses on protecting capital as well as making profits.
1) Expedia Stock (EXPE)
Next earnings are May 4. Earnings on Feb 10 were well beyond estimates coming in at 53% above estimates at $1.06 a share versus a loss of $2.64 for the same quarter last year. Revenue was $2.3 billion an increase of $1.1 billion quarter-over-quarter.
Trade 1:
For Mar 18 expiry I am selling the $165 put strike for $1.15 or more. If filled I plan to buy the $135 or $130 put strike for 15 to 20 cents.
2) General Dynamics Stock (GD)
The stock closed at $117.98 on Friday, a new high. Next earnings are Apr 26.
Trade 1:
For Mar 18 expiry I am selling the $195 put strike for $0.50 or more. If filled I will buy the $175 put strike for 10 cents or less to form a credit put spread.
3) Lockheed Martin Stock (LMT)
The stock closed at $409.49 on Friday another new closing high. Next earnings are April 18.
Trade 1:
For Mar 18 expiry I am selling the $360 put strike for $0.95 or more. If filled I will buy the $320 put strike for 20 cents or less to form a credit put spread.
4) Bank Of America Stock (BAC)
The stock closed at $45.02 on Friday. Next earnings are April 18.
Trade 1:
For Mar 18 expiry I am selling the $41 put strike for $0.40 or more. If filled I will buy the $35 for 8 cents or less to form a credit put spread.
5) KRE – SPDR® S&P Regional Banking ETF
The ETF closed at $73.84. I think regional banks will continue to do well even with interest rates rising and the Russia-Ukraine conflict.
Trade 1:
For Mar 18 expiry, I am selling the $65 put strike for $0.40 or more. If filled I will buy the $55 put strike for 5 cents or less to form a credit put spread.
6) Seagate Stock (STX)
The stock ended the day at $104.90. Next earnings are April 18.
Trade 1:
For Mar 18 expiry, I am selling the $92.50 put strike for $1.20 or more. If filled I will buy the $77.50 put strike for 20 cents to form a credit put spread.
Questions? Use ASK TEDDI
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. The author assumes no liability for your investment decisions. Read the full disclaimer.