Retirement Income Options

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 on entering trades and reasoning for trades.

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

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

Selling Cash-secured Puts

Aemetis (AMTX) is still well below fair value, so I continue to sell puts with strikes below the current share price. See also the Synthetic Longs below for appropriate accounts.

  • Sell AMTX $5 October puts for about a buck.

Starting a new position in Teledoc (TDOC). I am selling puts and have a GTC limit order to buy shares at $20 on volatility that I might move up.

  • Sell TDOC $22.5 August puts for over a buck (ask for the ASK before walking down every 20 minutes a nickel at a time – standard practice, learn it, live it, love it). 

SunPower (SPWR) is plumbing lows and is still the super solid financially company  over 50.8% owned by Total Energies (TTE) on the right side of the big decarbonization trend. SunPower is now focused on residential solar after total injected $250m by buying SunPower’s under used commercial and industrial unit.

  • Sell SPWR $9 September puts for about a buck. 

You can also sell puts on Paramount Global (PARA) and Warner Bros Discovery (WBD) to accumulate. Both are undervalued versus assets and future higher margin business. Have at least a starter positions in addition to selling puts. Own them as a pair, don’t try to be too smart picking one.

  • Sell PARA $15 September puts for about a buck.
  • Sell WBD $12.50 September puts for about a buck. 

Writing Covered Calls

I believe Palantir (PLTR) is still some time away from reigning in stock based compensation dilution and big earnings jumps. The rally on AI is a big overdone and the weekly RSI is a bit over 70 – a warning sign of a reversal. 

  • Sell $18 PLTR November calls against about 1/2 to 2/3 of your position for about $2 per contract (100 shares). 

I don’t own Uber (UBER) right now, but if you do, the weekly RSI is a shade over 70 and I just think the business has more chop to it. 

  • Sell $45 UBER September calls against about 1/2 to 2/3 of your position for about $2 per contract (100 shares).

Synthetic Longs

This is a rare trade. We only do it when we want leverage on a position and are willing to buy more at lower prices. Currently, Aemetis (AMTX) falls into that condition. 

  • We are happy to buy more shares at $5 per share.
  • We would like leverage for a rally into the $20s by January.

The trade to do for those who understand it and fits your risk parameters is: 

  • Sell AMTX $5 October puts for about a buck.
  • Buy 2/3 as many AMTX $10 January calls for about a $1.70. 

So, for instance, you might sell three of the $5 October puts and collect around $300 in premium. You would then buy two $10 January calls for a bit more than $300. 

Your risks are that the calls expire worthless and if the stock has a major correction, you buy more for $5. I believe there is a high likelihood that the stock would rise again from $5 and you would still be profitable long-term.

The big upside of this trade is that the stock rises, the puts expire and your calls become more valuable. If the stock rises to $20 per share by January, then your calls would be worth about $10 (the difference between market price and strike price) or about a 600% gain in 6 months. 

Do not make this a huge trade. It should be less than half of your total AMTX position. So, if your AMTX holdings are a full position of 4%, then the synthetic long, which is calendar sensitive (diminishing time value), should be no more than about 2% of your account value. 

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