Option Selling Trades Of The Week


  • My top option selling ideas for the week I am looking to do at my firm.
  • 3 cash-secured put trades and 1 covered call trade.
  • Ideas related to Punch Card Stocks, Grandpa Stocks, and Global Trends ETF report.
  • Enphase, New Fortress, Unity Software & Enovix options selling opportunities discussed.
Call and put option trading signs

A few times per month I will highlight option selling trades that I am looking to make at my firm. The main option selling piece will be my monthly “Options Expiration Update.”

Please make sure to read Using Retirement Income Options to understand our option selling approach.

Ask questions about the ideas presented today, in the comments section below the article. And, as always, visit the Chat regularly to discuss other option ideas and ask questions.

Options Ideas This Week

These are ideas related to the Punch Card Stocks lists, Grandpa Stocks and monthly Global Trends ETF report.

Enphase (ENPH) weekly RSI is 36 and if it corrects a bit more will be where I want it for selling a cash-secured put. I think fear of a Trump Presidency will weigh on the stock. I don’t think those fears are smart since solar is the fastest growing energy source and no magic ideological wand can change that.

Technically, Enphase is hitting the bottom of a rectangle and could very well hold a price around $95. If it falls, then about $84 is the next support level.

BATS:ENPH Chart Image by Kirk_Spano

ENPH Technicals (Kirk Spano)

I am looking to sell the…

Enphase Cash-secured Put
Enphase Cash-secured Put (Kirk Spano)

New Fortress (NFE) has a weekly RSI of about 20 and is very oversold. I think fundamentally it is also undervalued owing to short-termism of traders. I am going to sell a cash-secured put to bring my position back to a half if assigned to me.

Technically, NFE is hitting a pretty strong support zone around $20 per share. There simply isn’t much downside left in this stock. It is well outside the range it would normally be.

BATS:NFE Chart Image by Kirk_Spano

NFE (Kirk Spano)

I am looking to sell the…

NFE csp
NFE Cash-secured Put (Kirk Spano)

Unity Software (U) has a weekly RSI of 19 is very hated with a short interest of 12% and little retail buying interest. I think it’s a deep value versus very likely future business. You can certainly take a starter here in my opinion if you don’t already have one.

Technically, Unity is very oversold and at this point undervalued as well. It is hitting a series of tight support zones now and might have double bottomed. The MFI just turned up and is signaling a divergence that is usually worth paying attention to.

BATS:U Chart Image by Kirk_Spano

I am looking to sell the…

Unity Cash-secured Put (Kirk Spano)

Enovix (ENVX) is hot on recent deal with a weekly RSI of 74. It likely has some consolidation coming. If you have an oversize position, then I think selling a covered call against a portion of your position makes sense. If you only have a starter position, there’s nothing to do but wait to potentially buy more or sell a cash-secured put if it does indeed fall in price.

Technically, ENVX has pretty big support levels incrementally about $14, $12 $10 and $8. It’s always hard to tell where clean energy stocks can go due to high volatility.

BATS:ENVX Chart Image by Kirk_Spano

ENVX (Kirk Spano)

Consider selling…

ENVX Covered Call (Kirk Spano)

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