Options Trade

New Options Trade: High Upfront Income, Fear Creates Opportunity

High growth stocks have been selling off hard as the market is fearful of the fed’s indication of higher interest rates (as the "pandemic trade" continues to unwind). This has created an attractive opportunity to generate high upfront premium income in the options market. In this report, we share an income-generating options trade on an attractive long-term growth stock that has simply sold off too hard as a result of the market’s latest volatility and fear. In fact, premium income available goes up when short-term fear is high, and that is a big part of the reason why this trade is particularly attractive. We believe this is an attractive trade to place today and potentially over the next few trading sessions as long as the price of the underlying shares doesn’t move too far before then.

New Options Trade: High Upfront Income, International Electronic Commerce

Shares of this Brazilian electronic commerce juggernaut looked attractively inexpensive a few months ago, but have since fallen significantly further. Its woes stem from a weakening currency, interchange fee pressures, covid and now a recent FBI raid of its major POS terminal providers (in relation to cyberattacks). However, the business continue to strengthen and the market opportunity remains huge (lots of room for continuing growth). Contrarians may consider purchasing shares outright, however in this report we share an attractive income-generating options trade. The trade not only puts attractive upfront cash in your pocket (that you get to keep no matter what), but it also gives you a shot at picking up shares of this highly attractive business at an even lower price (if the shares get put to you before the contract expires in less than 1 month. We believe this is an attractive trade to place today (and potentially over the next few trading sessions) as long as the price of the underlying shares doesn’t move too much before then.

New Options Trade: High Upfront Income, Bullish Vertical Put Spread

Shares of this streaming TV platform have fallen 50% since July, and the stock now trades at a compelling price relative to its long-term value. However, for those of you that like high upfront income (and are real sticklers on price), the trade described in this report is worth considering. The trade strategy sounds complex (i.e. “bullish vertical put spread”), but it’s not. It puts attractive upfront premium in your pocket today, it gives you a chance to pick up shares of this attractive stock at a lower price, and it gives you a little insurance on the downside (i.e. your max loss is limited). We believe this is an attractive trade to place over the next few trading sessions, as long as the share price doesn’t move too dramatically first.

New Options Trade: High Upfront Income, Bullish Vertical Put Spread

This large social media company is set to announce earnings today after the close, however the share price is already down significantly in the last month due to fears related to the expected impacts of Apple’s new privacy changes. In our view, the impacts will be real, but this social media company will remain a long-term powerhouse, and the current situation has created an attractive high-income options trade. The trade strategy sounds complex (i.e. “bullish vertical put spread”), but it’s not. It puts attractive upfront premium in your pocket today, it gives you a chance to pick up shares of this attractive stock at a lower price, and it gives you a little insurance on the downside (i.e. your max loss is limited). We believe this is an attractive trade to place today—ahead of earnings.

New Options Trade: High Upfront Income, High Growth

In the short-term, the market is a voting machine, and in recent trading sessions high-growth stocks have been voted down indiscriminately. However in the long-term, the market is a weighing machine, and top business eventually rise to the top. In this report, we share an options trade that generates a lot of upfront premium income, and the trade is on a highly attractive long-term growth stock. This trade not only puts attractive upfront cash in your pocket (that you get to keep no matter what), but it also gives you a shot at picking up shares of this highly attractive business at an even lower price (if the shares get put to you before the contract expires in a matter of weeks). We believe this is an attractive trade to place today (and potentially over the next few trading sessions) as long as the price of the underlying shares doesn’t move too much before then.

New Options Trade: High Upfront Income, Diversified Midstream

In this report, we share a high-income-generating options trade on a diversified pipeline company that continues to make progress on paying down debt, it continues to pay an attractive distribution, and the share price is increasingly attractive. We believe the trade is attractive to place today, and potentially over the next few trading sessions as long as the underlying share price doesn’t move too far before then.

New Options Trade: High Upfront Income, Effective Social Media

As many technology companies are facing tough quarterly comps (as the initial pandemic social-distancing bump wears off), the market is misinterpreting (in some cases) the latest batch of earnings results with a short-term lens. And this has created some attractive opportunities in the options market. In this report, we review a high-income-generating options trade on a powerful social media stock that just recently sold-off. The trade not only puts significant upfront premium income in your pocket (that you get to keep no matter what), but it also gives you a shot at picking up shares of this extremely attractive company at an even lower price. We believe this is an attractive trade to place today and potentially into early next week, as long as the underlying share price doesn’t move too dramatically before then.

New Options Trade: Dividend Capture Covered Calls, Blue Chip Pharma

Today we share an income-generating options trade on a healthy-dividend blue-chip pharmaceuticals company. The trade not only generates compelling premium income and gives you a shot at selling the shares at a solid gain in less than 1-month, but it also gives you a chance to capture the dividend payment if the shares don’t get called away from you before the ex-dividend date in a little over 1-week from today. Also very important, we like this healthy-dividend company as a long-term investment, and we wouldn’t mind holding on to the shares if they don’t get called away. This is an attractive trade to place today and potentially over the next few trading sessions.

New Options Trade: High Upfront Income, Attractive Mortgage REIT

As interest rates (including mortgage rates) have slipped in recent weeks, so too has the share price of this attractive mortgage REIT fallen. It now trades at a significant discount to its last reported book value, and we believe this combination of events has set us up for a nice high-income-generating options trade. Specifically, we believe the trade described in this report is an attractive one to place today and potentially over the next few trading sessions, as long as the underlying share price doesn’t move too dramatically before then.

New Options Trade: Dividend Capture Covered Calls, Energy Midstream

Today’s income-generating options trade utilizes a dividend capture covered call strategy, whereby the trades nets you attractive premium income, potentially attractive dividend income (if the shares don’t get called), and captures attractive share price gains (if the shares do get called). The trade is on a compelling “high-dividend” midstream company that we own already, but you can also purchase the shares as part of this trade if you don’t own them already. We believe the trade is attractive to place today, and potentially over the next few days, as long as the share price doesn’t move too dramatically, and as long as you own the shares (settled in your account) prior to the ex-dividend date (expected on or around July 29th).

Very High-Income Options Trade, Bullish Vertical Put Spread

This global oncology company with patented “Tumor Treating Fields” (“TTF”) technology. It has multiple programs in phase 2 and phase 3 of clinical trials which can potentially result in exponential revenue growth and Total Addressable Market (“TAM”) expansion. The shares are volatile (for example yesterday they declined more than 14% as the market reacted to the company’s final results from a liver cancer study), and this volatility has given rise to an attractive high-income-generating options trade. The trade strategy sounds complex (i.e. “bullish vertical put spread”), but it’s not. It puts attractive upfront premium in your pocket today, it gives you a chance to pick up shares of this attractive stock at a lower price, and it gives you a little insurance on the downside (i.e. your max loss is limited). We believe this is an attractive trade to place today—and potentially over the next few trading sessions (including post the holiday)—as long as the underlying share price doesn’t move too dramatically before then.

New Options Trade: High Upfront Income, Attractive Business

The company we review in this report provides value-based care exclusively to Medicare eligible patients, and it is improving outcomes and reducing costs. The business is attractive as a long-term investment, however it is setting up nicely for a high-income-generating options trade. We believe the trade described in this report is an attractive one to place today and potentially over the next few trading sessions, as long as the underlying share price doesn’t move too dramatically before then.

Palantir: Selling Put Options, Lots of Cash

Big data software company Palantir has become an emotional stock for many people with widely ranging viewpoints. And these differing viewpoints have created volatility that leads to high premium income (i.e. cash) being available in the options market. In this report, we share a high income-generating options trade on Palantir that we believe is attractive to place today and potentially over the next few trading sessions, as long as the price of the underlying shares doesn’t move too widely before then.

New Options Trade: Very High Upfront Income, Connected TV

The market has not been kind to top growth stocks in recent months, and that means there are some very attractive businesses trading at very attractive prices. But rather than diving in headfirst, this report reviews an option trade that generates very high upfront premium income (that you get to keep no matter what) and it gives you a shot at picking up shares of one of the top growth stocks around at an even lower price. This trade covers a stock in the connected TV space, and we believe the trade is attractive to place today—and potentially over the next few trading days—as long as the market doesn’t move too dramatically before then.

New Options Trade: High Upfront Income, Bullish Vertical Put Spread

Warren Buffett’s Berkshire Hathaway has a large position in this attractive non-US fintech company. And this year’s volatility and share price softness has given rise to an attractive high-income-generating options trade. The trade strategy sounds complex (i.e. “bullish vertical put spread”), but it’s not. It puts attractive upfront premium in your pocket today, it gives you a chance to pick up shares of this attractive stock at a lower price, and it gives you a little insurance on the downside (i.e. your max loss is limited). We believe this is an attractive trade to place today—and potentially over the next few trading sessions—as long as the underlying share price doesn’t move too dramatically before then.

New Options Trade: Energy Sector, Yield Boosting

If you are an income-focused investor, you may want to consider the yield boosting options trade in this report. It’s a strategy that some investors repeat often, and in this particular instance we are focused on a high-income energy-sector investment that offers a 7.5% yield (paid quarterly), and this trade adds significantly to that amount. We believe this is an attractive trade to place today, and potentially over the next few trading sessions, as long as the price of the underlying security doesn’t move too dramatically before then.

New Options Trade: High Upfront Income, Attractive Small Cap Healthcare

If you like high income, you may want to consider the trade described in this report. It covers an attractive small cap healthcare company with very high sales growth and trading at a compelling price. But rather than purchasing the shares at the current price, this trade gives you a chance to pick them up at a lower price and it also generates high upfront premium income that you get to keep no matter what. We believe this trade is attractive to place today and tomorrow (the company announces earnings after the close tomorrow), as long as the underlying share price doesn’t move too dramatically before then.

New Options Trade: High Upfront Income, Attractive Long-Term Growth

If you like high income, but you are a stickler on entry prices, you may want to consider the options trade described in this report. The trade covers an attractive high-growth stock, trading at a significantly lower price than just 2 months ago due to market noise—as the business remains fundamentally attractive. Rather that purchasing the shares outright, you might instead consider this trade—which generates high upfront income—and gives you a chance to pick up the shares at a significantly lower price. We believe this trade is attractive to place today, and potentially over the next few trading sessions (as long as the underlying share price doesn’t move too dramatically from here).

New Options Trade: Chip Selloff Creates High Income Opportunity

Buying great businesses when they’re out of favor can work well over the long-term. This report reviews a compelling income-generating options trade on a very attractive semiconductor business that is currently/temporarily out of favor. Specifically, the share price is down as supply chain uncertainties add to sector momentum challenges. These factors have combined to create an attractive options trade opportunity that puts compelling upfront premium income in your pocket, and gives you a chance to pick up these attractive shares at an even lower price. We believe the trade is attractive to place today, and potentially over the next few trading sessions, as long as the share price doesn’t move too dramatically before then.

New Options Trade: Very High Upfront Income, Value-Based Healthcare

This recently public company (August 2020) is on a tremendous growth trajectory (very high growth rate) as it delivers its highly differentiated, technology-enabled, value-based care model for Medicare. The shares are worth considering for purchasing outright, however this report highlights a particularly attractive income-generating options trade. Specifically, the trade puts compelling upfront income in your pocket (that you get to keep no matter what) and it gives you a shot at picking up the shares at an even lower price. We believe this is an attractive trade to place today (and potentially over the next few trading sessions) as long as the price doesn’t move too dramatically ahead of the company’s earnings announcement expected on March 8th.