(TRADE ALERTS) Retirement Income Options: ARKK



Retirement Income Options is a weekly piece that offers my top option selling ideas for the week. These ideas are primarily from the quarterly “Plug & Play” lists, but will sometimes come from the broader Very Short Lists (watchlists).

Make sure to read “Using Retirement Income Options” and “Technical Trading Basics” in the Getting Started area so you can follow my methodology and reasoning.

The following trades are generally for six and seven figure accounts. Remember to check out the noon Monday Retirement Income Options webinars live or on YouTube.

Investment Quick Thought

As the stock market slides on fears of potential Federal Reserve over tightening to compensate for inflation which could lead to a recession that is inflationary, i.e. stagflation, there are beginning to be a lot of opportunities. 

There are so many stocks getting to monthly oversold levels that I will focus on those. We are close to wanting to start to scale into ETFs just to get quick exposure to stocks, either for trading or long-term investing. 

As I said in this weekend’s piece:  

Here’s How To Beat This Bear Market

We are likely to see some substantial relief rallies, that are met with another wave of selling – particularly in large caps. Small and midcaps are close to being accumulated by vulture investors, your private equity and family office types. That is what always precedes a new bull market, which is what I expect to develop late this year.

If you are short on cash, use the relief rallies to raise cash and the corrections to upgrade your positions. If you are heavy cash, you can start the slow process of scaling in soon.

I think selling cash-secured puts about a month or two out is a great way to win on the volatility If we get a little lucky, us selling puts near short-term bottoms leading into rallies, will allow us to collect a lot of premium. We’ll have to watch to know whether to let expire or take profits by closing the put positions.

Cash-Secured Puts To Sell This Week

  • ARK Innovation ETF (ARKK) the top 10 holdings are getting massacred. Most are approaching support and ARK continues to take in money to invest. I’d feel different if this fund was losing assets, but it’s not. 
    • ARKK $40 Sept cash-secure put for $5+
  • Invesco Wilderhill Clean Energy ETF (PBW) benefits from the long-term trend in clean energy that OPEC, Russia and China are accelerating. Scale in slowly, but this could be the biggest winner the next decade. Max Pain is $58. Prices have fallen, so I’m asking for more premium, but not changing the strike.
    • Sell $50 June puts for $8 or more.
  • Amplify Transformational Data Sharing ETF (BLOK) is falling hard on Bitcoin correction. Bitcoin has a target of about $30k, but could very well head to lower $20k range where there is huge institutional interest. Set a GTC and let it happen. 
    •   Sell $25 August puts for over a $5. 
  • Paypal (PYPL) is just a gift under $100. RSI on the monthly is at 30, which is sort of crazy to me. Max Pain is currently $110 so there is some price pull in that direction. I rec’d the following puts last week. They are just getting there as anticipated:
    • Sell $80 July puts for $8 or more.
  • Azure (AZREnew CEO is the former CEO of Indica’s first and largest infrastructure trust.  Max Pain is currently at $17.50 so there is some price pull in that direction The puts I rec’d last week are trading a bit higher, so ask for a bit more. 
    • Sell $12.50 July puts for $1.50 or more.

Disclosure: I/we have a beneficial long position in the shares of ARKK, PBW either through stock ownership, options, or other derivatives.