Retirement Income Options: T, PYPL, TDOC, STNE & AMTX

Summary

  • Proceed with extreme caution on expanding equity exposure.
  • A long-term covered call on AT&T could add income and help trim the position back down to size.
  • PayPal I can write both ways.
  • 4 growth stocks near bottoms.

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.

Cash-Secured Puts To Sell This Week

The stock market might be getting a bit of a rebound rally, so we want to be very focused on what puts we sell here, as I expect the bear market is only about half done in large caps. So, we’ll focus on stocks already beaten up. 

  • Aemetis (AMTX) I said I was building to a double position. That might not be right for everyone’s risk tolerance, but I’m a very growthy investor. As always, manage your asset allocation to your risk level and goals. Aemetis is flirting with $7 again. It could get to $4-5 for a hot minute, but institutional interest is high, so, that won’t last long if it happens. 
    • Sell $7.50 AMTX October puts for $2+
  • Teledoc (TDOC) is crushed. Here’s what I said a few weeks ago: ” I touched on in recent webinars. It is about oversold on the monthly and is fairly valued. It’s clearly a takeover target at this market cap. Anymore price weakness should be bought. I am looking at selling puts.” Well, here are the puts: 
    •  Sell $30 TDOC July puts for $3+
  • Stone (STNE) is near bottom fishing and institutional investors are buying foriegn assets with strong dollars. I wouldn’t be surprised to see Berkshire Hathaway’s (BRK.B) position increase. Brazil is a power house waiting for another big round cycle. Stone will participate. 
    • Sell $9 STNE October puts for $2+
  • Paypal (PYPL) is part of the fintech revolution. They’ve been range bound and have little downward momentum left and is super oversold on RSI and MFI. Own it in QQQ or buy it or both. We wrote on this a month ago, you still have a chance. 
    • Sell $80 PYPL August puts for $8+

Covered Calls To Sell This Week

If you own overbought stocks, ask about them in the comments. In general, if RSI is over 70 right now on weekly charts, then you should be trimming and/or selling covered calls. There are a lot of oil stocks that fall into that category. 

  • AT&T (T) was a double position for us as we awaited the Warner Brothers and Discovery merger (WBD), and collected the dividend. AT&T is emerging as a great retiree stock again. I do expect it to make $40 in the next bull market which would be a double from here. It could reach $60 with good execution. And, if they suddenly become a global carrier due to AST Spacemobile’s (ASTS) satellite to cell 5G working, then who knows how big AT&T could become. That said, some of us want it to be a normal weighted stock again. I am using covered calls to do that. If you need to trim, but want to keep collecting the dividend, a longer dated covered call might do the trick.
    •  Sell $22 T November calls for $1+