Small and large dividend stock and ETF investors can use covered calls and puts trades to generate monthly income from options premiums and options trading.
8.25.23. XLE $87.59. On Friday's close, I sold XLE 9.15.23 $83 puts for $0.40 per share, or $40 per 100-share puts option. Delta -.16. OTM 82.9%. IV 25.63%.
8.25.23. KHC $33.95. I sold KHC 9.15.23 (21 days) $33 puts for 0.23. D -.25. OTM 73.2%. IV 16.88%. I own KHC at $33.28. My KHC 9.15.23 $34 calls may be exercised before I can collect the $0.40 per share dividend. Ex-dividend 8.30.23. Net debit is $33.28-.23-.17= $32.88).
8.25.23. MRK $109.28. Cost $113.99. Net debit (Cost minus collected dividends and puts and calls premiums =$108.24). MRK 8.25.23 $108 calls will be exercised. Sold MRK 9.29.23 $107 strike puts for $1.66. Delta -33. OTM 64.31%. IV 20.68%.
8.23.23. I'm waiting for NVDA's earnings report before I sell any more puts. Selling puts is a bullish trade.
WSM reported lower earnings and revenues and the stock jumped $14. That may be because the results beat estimates. But those results and lower guidance by the company caused me to buy back my WSM 8.25.23 $121 puts. I also decided I won't sell WSM 9.15.23 puts.
Today, I'm more interested in NVDA's earnings report, which will be released after the markets close. A bad report or guidance could tank a lot of stocks and the markets for a few days and even longer, I think. If that happens, there will be a lot of good options trading opportunities.
Jackson Hole's meeting and Fed Chairman Powell's speech don't strike me as important as NVDA's earnings report.
8.25.23. XLE $87.59. On Friday's close, I sold XLE 9.15.23 $83 puts for $0.40 per share, or $40 per 100-share puts option. Delta -.16. OTM 82.9%. IV 25.63%.
8.25.23. Why is market up after Jay Powell's rather hawkish speech at Jackson Hole, WY?
Short covering? Bullish on NVDA earnings? Light volume lets bulls prevail today? Wait for Monday?
8.25.23. KHC $33.95. I sold KHC 9.15.23 (21 days) $33 puts for 0.23. D -.25. OTM 73.2%. IV 16.88%. I own KHC at $33.28. My KHC 9.15.23 $34 calls may be exercised before I can collect the $0.40 per share dividend. Ex-dividend 8.30.23. Net debit is $33.28-.23-.17= $32.88).
8..25.23. DHR $255.30. I sold DHR 9.15.23 (21 days) $242.50 puts for $1.25. Delta -.16. OTM 82.8%. IV 22.4%.
8.25.23. MRK $109.28. Cost $113.99. Net debit (Cost minus collected dividends and puts and calls premiums =$108.24). MRK 8.25.23 $108 calls will be exercised. Sold MRK 9.29.23 $107 strike puts for $1.66. Delta -33. OTM 64.31%. IV 20.68%.
My September expiration puts trade candidates are CTRA, CAT, CSCO, MPC, STX, SMH and maybe QQQ and IWM.
8.23.23. I'm waiting for NVDA's earnings report before I sell any more puts. Selling puts is a bullish trade.
WSM reported lower earnings and revenues and the stock jumped $14. That may be because the results beat estimates. But those results and lower guidance by the company caused me to buy back my WSM 8.25.23 $121 puts. I also decided I won't sell WSM 9.15.23 puts.
Today, I'm more interested in NVDA's earnings report, which will be released after the markets close. A bad report or guidance could tank a lot of stocks and the markets for a few days and even longer, I think. If that happens, there will be a lot of good options trading opportunities.
Jackson Hole's meeting and Fed Chairman Powell's speech don't strike me as important as NVDA's earnings report.