Options Ideas 8-3-2020

Summary

  • Focused on option selling.
  • Some opportunistic hedges.
  • Screening for ideas.

Each Monday I put out lists of covered calls and cash-secured puts using screens at BarCharts. I am screening for VSL stocks, as well as, an expanded universe of stocks that used to be on the VSL. Stocks no longer on the VSL should have covered calls written near the money in hopes of getting called away or at least getting a higher premium. Stocks currently on the VSL can be written a bit out of the money to allow for more appreciation, the offset is lower premium.

I am arranging alphabetically, but you can sort how you want.

Stock Covered Call Ideas

covered-calls-screener-covered-calls-vsl_-08-03-2020.csv

Cash Secured Put Ideas

naked-puts-screener-cs-puts-vsl_-08-03-2020.csv

ETF Cash Secured Put Ideas

naked-puts-screener-etfavs-c-s-puts-08-03-2020.csv

Option Selling Basics

Stick with oversold, i.e. RSI below 40 and rising, or RSI below 30. Look at commodity ETFs, I think those do well on recovery and 2021 stimulus. Look at global and international ETFs as those compare favorably to U.S. markets on valuation.

Basic Options

Stand Out Ideas

  • Ulta (ULTA) cash-secured puts: December $180 for $20+
  • Ford (F) cash secured puts: December $7 for $1+
  • Store Capital (STOR): October $20.00 for $3+
  • Nutrien (NTR): December $30 for $2+
  • AT&T (T): September $32 for $4+

Disclosure: I am/we are long F, T, KMI, NTR.

Related Articles

close

Get alerts when we publish a new idea!

Get Our Investment Ideas
Fully Confidential