February Options Expiration Update

Retirement Income Options offers my top option selling ideas. The stocks and ETFs are from the quarterly “Plug & Play” lists and Global Trends ETF.

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.Follow weekly update article on Mondays.

Consult the VSL for long-term charts. Consult recent articles for intermediate term charts and commentary (use article search bar).

Featured GTC Trades This Week

Until we are sure the bear market is over, we are focused on getting net buy assignments at about our bottom fishing prices. Set your strike a bit lower and accept less premium if you already have a full position in a security. If we see a rally in coming weeks or months, we might go back to selling covered calls.

Always remember to use GTC orders to use volatility to your advantage.

Occidental Petroleum (OXY) is facing minor headwinds and is below Berkshire’s warrant price making it a buy if you want the stock or a great put selling opportunity to collect the oil market volatility premiums.

  • Sell OXY $60 May puts for $5+
  • or take less premium to sell the OXY $55 May puts for around $3 – you might have to take a bit lower.

Google (GOOG) is flirting with my buy zone. In fact, in one of the older charts with Fibonacci ratios, it is testing a .618 line for the third time. $75 looks like a pretty supportive level if it breaks definitively below $90. I talk more about it in Stocks of the Week.

  • Sell GOOG $80 May puts for $4+

New Fortress Energy (NFE) is dipping on natural gas market relief due to warm weather. I can’t find a negative argument for New Fortress intermediate term. 

  • Sell NFE $35 April puts for $2+

Ford (F) has a primary wave setup around $10-11 and that’s where I have my bottom fishing as well.

  • Sell F $11 March puts for $1+

Intel (INTC) has some downside to the lower $20s, but I don’t want to quibble too much given the tremendous upside. Fought off the dividend cut which means it was largely priced in.

  • Sell INTC $25 April puts for $1.50+

Unity Software (U) is plumbing bottom fishing and showing a good base technically. Earnings we fine and their long-term is very underappreciated.

  • Sell U $30 May puts for $4.50+
  • if you sold these for more last month, hold on, you’re profitable and likely to make more. We’ll consider closing later.

Palantir Tech (PLTR) just signaled they are pivoting to profitability with a profitable quarter and forecast for a full year of profitability for the first time. They also cut their workforce 2% to trim fat, but also, nick at employee stock compensation – the signal we have been waiting for. I really like PLTR on the dips and I don’t think there’s many more. I expect a sustained rally in the next year or two.

  • Sell PLTR $8 May puts for $1+

SunPower (SPWR) has a very attractive growth curve and has been chopping in teens a while now. Earnings were okay, industry is facing short-term headwinds and is volatile. 

  • Sell SPWR $14 April puts for $1.50+

Teledoc (TDOC) is likely to make its way back onto the P&P Growth as it looks to be a key player in controlling healthcare costs and is a takeover target. It’s near bottom fishing and premiums are fat.

  • Sell TDOC $25 April puts for $2.50+

Pfizer (PFE) speaking of healthcare deflation, this is a big one that has to capture market share with cheaper drugs. I think it will over time. Good dividend, good growth, good balance sheet. Not sexy, just steady with upside while you collect a dividend. 

  • Sell PFE $40 May for 4+ 

P&P Option Selling Targets

To make reading easier, lists will be switched to alphabetical per category soon. Remember to use weekly RSI, open contracts and Maximum Pain as a guide to setting GTC orders. Remember, my prices are the LEAST, not the most, I’m looking to receive in premium.

S&P 500 Growth Stocks

A combination of growth and value with strong intermediate term runways. Of note, there are not many “growth” companies on the S&P 500 as few have growth rates over 20% because they are already large. Most of the S&P 500 companies worth owning pay a dividend and appear in the S&P 500 Dividend Stocks below. I’m only including stocks here with a dividend below 1%.

CompanyBottom FishingGTC Orders
Berkshire Hathaway (BRK.B)270
Alphabet (GOOG)7580 May put 4
Amazon (AMZN)7480 May put 6
Nvidia (NVDA)90
Warner Bros Discovery (WBD)1315 June put 2
Freeport McMoran (FCX)13
Generac (GNRC)78
Occidental Petroleum (OXY)6060 May put 5
Tesla (TSLA)50

Mid Cap Growth Stocks

$3b to $20b, or $20b+ but not on the S&P 500. Higher growth potential than the large caps in most cases.

CompanyBottom FishingGTC Orders
Square/Block (SQ)6265 May put 3.50
Unity (U)3030 May put 4.50
SunPower (SPWR)1414 April put 1.50
Shopify (SHOP)3030 June put 3
Palantir (PLTR)78 May put 1
MP Materials (MP)2830 June put 3
Uber (UBER)2730 June put 3

Small Cap Growth Stocks

Under $3b or not regularly profitable yet. Here’s where you will find a bit more “high risk” in our lists. Not all small cap stocks are high risk though. Some are just more volatile. There is a difference. Many of these are market risk, though some are indeed high risk. See the VSL for risk ratings.

CompanyBottom FishingGTC Orders
Aemetis (AMTX)55 April put 1buy
Ginko Bioworks (DNA)4buy
Enovix (ENVX)910 April put 2
Heron Therapeutics (HRTX)4buy
AST SpaceMobile* (ASTS)55 May put 1
Rocket Lab* (RKLB)55 April put 1
Planet Labs* (PL)55 April put 1
Satellogic* (SATL)5buy
BlackSky* (BKSY)4buy
Spire Global* (SPIR)4buy
Stone Capital (STNE)89 April put 1
Jumia (JMIA)34 May put 1

* Space basket.

S&P 500 Dividend Stocks

Looking for strong dividend growers and hidden value. Value usually comes from hidden future growth, ability to pay down debt often quickly (often by reducing capex) or company assets the market is not assigning enough value to (or in many cases no value).

CompanyBottom FishingGTC Orders
Microsoft (MSFT)142
Apple (AAPL)80
Ford (F)1112 April put 1
Intel (INTC)2825 April put 1.50
American Tower (AMT)172180 July put 8
Pfizer (PFE)3640 May put 4
Kinder Morgan (AMT)1517 May put 2
Paramount Global (PARA)1820 May put 2
AT&T (T)1718 April put 1

Non S&P 500 Dividend Stocks

A lot of special stories here that could yield large gains, including special dividend payouts.

CompanyBottom FishingGTC Orders
New Fortress Energy (NFE)3335 April put 4
Permian Resources (PR)810 April put $1
BlackStone (BX)60
KKR (KKR)39
VICI (VICI)2325 June put 2
Innovative Industrial Properties (IIPR)7890 June put 12
STAG Industrial (STAG)24
Digital Realty Trust (DLR)78

ETF Option Selling

See the monthly Global Trends ETF for full updates on ETFs.

In general, there aren’t many ETF option selling trades due to the size of most folks accounts. However, from time to time there is one that makes sense as part of a scaling in process or taking some income off of an appreciated asset. I will list those here as I see it makes sense. 

ARK Genomic Revolution (ARKG) is a tactical ETF in our asset allocation. For those who are nimble and accepting of higher risk, I think selling a put as a first step to building a long position for later in the year could be worthwhile for the aggressive investor: 

  • Sell ARKG $27 puts for $1.50+

Closing Investment Thoughts

Never forget this…

“The stock market is a device to transfer money from the impatient to the patient.” – Warren Buffett (again)

The bear seems to be growling again. The stock market keeps fighting the Fed and the bond market. That usually doesn’t end well for stocks. So, keep your cash levels high, but pick select spots to capture the high premiums brought on by volatility.

Always remember, it’s okay to get assigned at higher prices than ultimate bottoms, time is on your side with most of these companies (I’ll be wrong on some, circumstances can change and a few managements will fail, but most will do well over time). 

The Fed is trying to wait out potential energy inflation through summer. Late summer into autumn seems like a good time to be more fully invested. Scale in slowly, the calendar can always take longer to flip.

Related Articles

Focusing On Capitulation Trades II

We continue to focus on capitulation trades as we expect quantitative tightening, earnings revisions and a good old panic sell to mark the bottom of this bear market sometime this year. I called the market top and I’m now I’m calling a market bottom soon that leads into an epic Presidential Cycle bull market.

Q4 2022 Plug & Play Stocks

Each quarter we publish our list of “Plug & Play” stocks to focus on this quarter. With the bear market raging, we tighten up and look at 27 growth stocks and 22 dividend stocks that should lead us out to much higher levels in the next several years. Join us. All you need is an Investor Ideals membership to get our full focus list of top stocks.

close

Get alerts when we publish a new idea!

Get Our Investment Ideas
Fully Confidential