Retirement Income Options: October Expiration Edition

Retirement Income Options focuses on our Plug & Play lists for simplicity. You’ll find conviction trades ready right now that I am making, as well as, charts of option selling ideas for all Plug & Play Stocks for this quarter.

If you have other stocks or ETFs that you have a question about, i.e. looking covered call or cash-secured put opportunities, please ask a question in the comments and I will post an answer and/or include in next week’s article.

Make sure to read: 

c = covered call p = cash-secured put

Except where noted, trade ideas refer to normal 3rd Friday expirations.

Bold are newly added stocks/ETFs.

Covered call recs are based on the idea you own the underlying already, NOT to do a buy-write.

Conviction Trades

My conviction trades are those I am trying to make at my investment firm this week which may or may not execute depending on price movements. These ideas are based upon the buy zones and oversold or overbought signals.

We don’t make trades to just make trades. We want the odds on our side to mitigate our risk while we generate income and accumulate shares in Plug & Play stocks & ETFs.

Remember, always try to get a bit more than the ASK when selling options, use the volatility. You can walk the premium down a nickel at a time over a day or two.


Covered Call Ideas

Nutrien (NTR) I added this last week, you should be able to get it now. TA has had a great run and recently broke out. The spike the past month or so is overdoing it. Stock likely pulls back to $60ish. Is a good time to almost double your dividend income with a covered call in my opinion. Trim it too if you have it.

  • Selling December $75 covered call for $1.25+

Travel America (TAI put this up last week, you should be able to do it now.I do love this business model, but it’s not asset light and credit is getting tighter. Time to create some income from this one as it might enter a lull. Trim it too if you have it.

  • Selling December $55 covered calls for $5+

Cash-secured Put Ideas

With option expiration comes several added ideas to write against some newly freed up cash.

AT&T (T) I know you still hate this downward drifter too. But, me and shooter both see $23-24 as an absolute bottom area. Plus, some big fish are clearly accumulating shares from the weak “dey took me divident” crowd. I think AT&T is underpriced by around $130 billion. It’s market cap is down to $181 billion. It’s roughly a double from here. You really can’t ask for much more margin of safety intermediate term.

  • Selling January $25 cash-secured put for $1+ (I presume you own this, if you don’t, also buy a starter position). I’m selling January because I expect any rebound to occur after tax-loss selling.

Discovery (DISCA) is undervalued by about half as well in my opinion. The coming deal with Warner will make it the biggest content provider on the planet and it will have the broadest international reach. I see a very Netflix (NFLX) type ride with this one someday.

  • Selling January $22.50 cash-secured puts for $1+. I’m selling January because I expect any rebound to occur after tax-loss selling.

ViacomCBS (VIAC) keeps moving in the right direction on streaming revs and I can’t imagine them not doing a strategic deal (something with Comcast (CMCSA) with NBC seems inevitable to me). If you are a dividend investor, you should be moving towards having a full 4% position here. 

  • Selling January $37.50 cash-secured puts for $2+

Ontrack (OTRK) I know you hate it. Get over it. They’re priced for Armageddon and have government contracts. They ain’t going nowhere. When a company is priced for Armageddon ask one question: will it be here in five years. If the answer is yes, buy it. Technicals started moving in the right direction the past month.

  • Selling January $7.50 cash-secured puts for 75¢+

Stone Co (STNE) Berkshire is a heavy investor in this Brazilian fintech. Early mover advantage, back to near IPO prices. Stone Co reminds me of Square (SQ). Somebody bought a bunch late last week. Potential triple or better from here. Take a starter position (I already have one) and…

  • Selling January $37 cash-secured puts for $3+

Fast Acquisition (FST) is moving fast in a fast moving online gaming world. Their deal with DraftKings (DKNG) is a big deal and hints at more M&A as companies like MGM (MGM) have sold off their real estate. 

  • Selling January $12.50 cash-secured puts for $1.50+

Palantir (PLTR) is still a bit hard to decipher, but they keep making deals for their AI and analytics services with governments and big business. It’s hard to see this one not beating the markets over time, the only question is can it be a multi-bagger from here. I suspect yes as it is consolidating much like MP Materials while it builds.

  • Selling December $25 cash-secured puts for $2.50+

MP Materials (MP) has been consolidating for a while now. The long-term potential is huge here as we move to EVs. Pretty simple thesis. Rare earth metals and magnets. Will probably spike at some point like all metals mining stocks and then round trip it. I think the spike potential is $100+.

  • Selling January $30 cash-secured puts for $3+

Ginko Bioworks (DNA) I tried to put you on a while back. If you waited, you should get a chance to buy this platform genetic research company soon, or at least sell a cash-secured put. 

  • Selling January $10 cash-secured put for $2+

Heron Therapeutics (HRTX) continues to expand its indications for its anti-opiate solution. Again, this company has strong smart hands involved as investors. Learn what ZYNRELEF is. Remember, Purdue Pharma and oxycodone? That’s what they’re target market is. These guys could become that big without selling opiates. 

  • Selling December $11 cash-secured puts for $1+

Aemetis (AMTX) is a big winner with higher energy prices and clean energy regs continuing to get tighter. They had a bit of profit taking late last week. I am trying to sell more puts as I only have had a small taste of this on so far. The more I learn, the more I like. I want to own shares on pullbacks. The November’s got executed last week for me, you can try to sell those as well if you like, per chart below. Mind your asset allocation.

  • Selling January $17.50 cash-secured puts for $2.50+

Sirius XM (SIRI) continues to build a global case. I really like selling puts here along with a position in Liberty Sirius (LSXMK) which is a significant Berkshire holding as well. Their subscription revenue potential is huge now that they are global via streaming vs just satellite U.S. 

  • Selling January $6 cash-secured puts for .50+

* and speaking of satellite stocks, all of the Satellite as a service stocks and AST SpaceMobile are priced to buy or sell puts if you don’t have half positions yet (about 2% of your NAV each). 

Sustainable Growth

Bold = New (might be symbol, might be a price)

New charts are linked to company name.

*** more coming next week ***

CompanySymbolTOBZBFOption Ideas
Aemetis(AMTX)1711p Nov 17.5 > 1.50
Azure Power(AZRE)2418
Discovery(DISCA)4232p Jan 22.50 > 1
Heron Therapeutics(HRTX)1912p Dec 11 > 1
Liberty Sirius(LSXMK)4038
MP Materials(MP)3116p Jan 30 > 3
OpenDoor Tech(OPEN)2016
OnTrack(OTRK)2912p Jan 7.5 > .75
Palantir(PLTR)2521p Dec 25 > 2.50
Solar Edge(SEDG)228182
Sirius XM(SIRI)76p Jan 6 > .50
Stone Co(STNE)3630p Jan 37 > 3
Unity Software(U)116102

Recent SPAC Mergers To Own:

CompanySymbolTOBZBFOption Ideas
WeWork [BowX](BOWX)12.508
Fertitta Entertainment [Fast](FST)1511.25p Jan 12.50 > 1.50
Ginko Bioworks(DNA)12.508p Jan 10 > 2
AST Spacemobile(ASTS)12.508p Jan 10 > 2
Satellogic [CF Acq](CFV)12.508 no options market
Planet Labs [DMY Tech](DMYQ)12.508no options market
Spire Global(SPIR)12.508p Feb 7.5 > 1.5
BlackSky(BKSY)12.508p Feb 7.5 > 1.5

Dividend Collector

CompanyStock SymbolTOBZBFOption Idea
American Tower(AMT)246221
Bristol-Myers(BMY)5449p Jan 55 > 5
Crown Castle(CCI)152135
Compass Diversified(CODI)2721
Cisco Systems, Inc.(CSCO)4841
Walt Disney(DIS)151121
Barrick Gold(GOLD)2118
Icahn Enterprises, L.P. (K-1)(IEP)5752
Kinder Morgan Inc(KMI)1615
Lockheed Martin Corporation(LMT)341317
Lumen Tech(LUMN)1311
Newmont Mining(NEM)5147
New Fortress Energy(NFE)2820
NRG Energy(NRG)3532
Nutrien(NTR)6148c Dec 75 > 1.25
STAG Industrial(STAG)3531
Store Capital(STOR)3128
AT&T(T)3228p Jan 25 > 1
Vici Properties(VICI)2724

Global Trends ETF

* No ETF ideas yet, I will fill the chart next week though. 

Exchange Traded FundETF SymbolTop OfBuy ZoneBottomFishingOption Ideas

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I own or will own most of these soon.