Retirement Income Options New Year’s Edition

Welcome to new members. Please remember to visit our “Getting Started” section to get the lay of the land.

The Retirement Income Options Expiration Report is published monthly the week after the third Friday of each month. Make sure to read the “Using Retirement Income Options” piece in the “Getting Started” section.

Look for trade alerts throughout the month, a market update or two, and participate in the chat for more option selling thoughts from me and other members.

Join the Monday Retirement Income Options webinar to see examples of option selling and ask questions.

TradingView Screening For Ideas

Here are stocks overbought on the monthly RSI reading. This almost always signifies a market top.

Monthly RSI Overbought
Monthly RSI Overbought (Kirk Spano)

I would be trimming all of those and selling covered calls.

Here’s a list of stocks that are oversold or approaching oversold on the monthly RSI reading.

RSI
Oversold Monthly RSI (Kirk Spano)

If you want those companies in your portfolio, slowing accumulating and selling cash-secured puts is a great idea. As you can see, far more stocks are oversold than overbought. What does that tell you about markets now?

Outstanding Options

Here’s what I have outstanding and my game plan for each.

CompanyOutstanding Option with Premium Rcvd.Current Stock PositionOption Game Plan
Aemetis (AMTX)April long $10 callsstarterhunting another catalyst rally
Ford (F)Feb $10 puts at 50¢FullClosed for a dime and am selling March $12 puts.
Occidental (OXY)Jan $60 puts at $2.49halfwill let get assigned then sell covered calls on a rally
Permian Resources (PR)Jan $14 puts at $1.10StarterHold and let get assigned to me or likely sell more on a dip more if expire.
Pfizer (PFE)Jan $28 puts at 74¢halfletting expire
Square (SQ)Feb $75 puts at $1.20starterletting get assigned
Teledoc (TDOC)Feb $22.50 covered callsagainst 1/2$18.29 cost basis on TDOC
Invesco Solar ETF (TAN)Jan $45 puts at $3.Fullclosed for a profit at 20¢

Reread the last 2 Retirement Income Options pieces for context.

We got our first down week in 9 last week which coincided with my December option expiration update that we would see a small pullback. Use it.

Weekly Put Selling GTCs

These are the stocks I’m targeting for the next week or two to sell cash-secured puts. You’ll notice some repeats and a new group with similarities.

CompanyCash-Secured Puts To Target
Block/Square (SQ)March $65 for $3.50+
Ford (F)February $12 for 60¢+
Occidental Petroleum (OXY)Feb $60 for $3, full
Paramount (PARA)March $15 puts for $2, half
Pfizer (PFE)March $30 for $2, half
Warner Bros Discovery (WBD)April $10 for 50¢+
iShares Global Clean Energy (ICLN)April $15 for 75¢+

Covered Call Strategy

Discussion of stocks and ETFs that might be good covered call candidates at certain prices and weekly RSI levels. If you have stock holdings you would like me to cover, please mention in chat (remember to tag me @kirkspano) or put in the comment below.

Overbought StocksCovered Call Strategy
Eli Lilly (LLY)There is no real options market due to price of stock. I strongly recommend taking out most profits by trimming position.
Marathon Petroleum (MPC)Take partial profits now and sell against portion of position:MPC April $160 covered calls $8+
Super Micro (SMCI)Take profits. Get down to a starter if you own it.
Broadcom (AVGO)There is no real options market due to price of stock. I strongly recommend taking out most profits by trimming position.
Caterpillar (CAT)Take partial profits now and sell against portion of position:CAT March $280 covered calls $18+

Closing Investment Thoughts

Square has pulled back, make sure to look at that. I already have puts sold.

Palantir is choppy, I like it long-term. Could be a candidate for selling covered calls and cash-secured puts.

I’m also taking a look at Bitcoin miners with a good energy business behind them, in particular, Marathon (MARA) and Ires Energy (IREN).

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