Introductory Comments:
For Thu Mar 24 2022 there are 5 stocks on the watch list.
Stay In Your Comfort Zone
Remember to stay within your comfort zone for the trades listed. When viewing the stocks on the list, remember that these are ideas. Nothing is “written in stone”. Trades have to be flexible to be successful. The prices I quote are from the prior trading day’s close and prices can change quickly once trading resumes, so they act as a guide for what I hope to earn. It is important to weigh the risk of capital against the earnings that can be made before deciding on what stocks to trade from the watch list.
Buy To Close Early
Also remember to buy to close trades early and don’t leave trades open for a few pennies of profit. Instead, close trades, reduce risk to capital and look for new trades to continue to grow profits.
Make Your Own Watch List
When considering trade opportunities from the FullyInformed Watch List, make your own list first and then review the FullyInformed watch list to pick those stocks that suit your comfort level and meet your portfolio criteria. For example perhaps you prefer just dividend paying stocks in case stocks do move lower. Other investors may be looking for those stocks that pay out good put premiums but are strong enough not to pullback for a short period of time. Make sure you have a plan that focuses on protecting capital as well as making profits.
1) McDonalds Stock (MCD)
Next earnings are April 27. The stock closed at $240.26 on Thursday.
Trade Idea 1:
For Apr 8 expiry sell the $225 put strike for $0.65 or more and buy the $200 put strike for 10 cents or less to form a credit put spread.
2) American Express Company Stock (AXP)
Earnings are Apr 22. The stock closed at $188.89 on Thursday.
Trade Idea 1:
For Apr 8 expiry sell the $167.50 put strike for $0.90 or more and buy the $140 put strike for 15 cents or less to form a credit put spread.
3) Boeing Stock (BA)
Earnings are Apr 26. The stock closed at $189.05 on Thursday.
Trade Idea 1:
For Apr 8 expiry sell the $167.50 put strike for $1.00 or more and buy the $150 put strike for 18 cents or less to form a credit put spread.
4) General Motors Stock (GM)
Earnings are Apr 26. The stock closed at $44.35 on Thursday.
Trade Idea 1:
For Apr 8 expiry sell the $43 put strike for $0.90 or more and buy the $38 put strike for 15 cents or less to form a credit put spread. This trade may end with stock being assigned as $43 is close to where the sun is trading. I would own shares and plan to sell covered calls if needed.
Trade Idea 2:
For Apr 14 expiry sell the $41 put strike for $0.55 or more and buy the $35 put strike for 7 cents or less to form a credit put spread.
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. The author assumes no liability for your investment decisions. Read the full disclaimer.