Introductory Comments:
For Tue Aug 8 2023 there are 4 stocks on the watch list. I am expecting some weakness today. If there is some weakness, I will try to entry the trades below.
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) NVIDIA Stock (NVDA)
The stock closed at $454.17. Next earnings are Aug 23. The stock rose $7.00 on Monday and continues to stay in an uptrend. For a couple weeks of risk, I like this trade.
Trade 1:
For Aug 18 expiry selling the $410 put strike for $1.30 or more and buy the $365 put strike for $0.15 or less.
2) Advanced Micro Devices Stock (AMD)
The stock closed at $116.81. Next earnings are Oct 30.
Trade Idea 1:
For Aug 18 expiry selling the $107 put strike for $0.55 or more and buying the $90.00 put strike for $0.05 or less to form a credit put spread.
3) Taiwan Semiconductor Stock (TSM)
The stock closed at $96.35. Next earnings are Oct 11.
Trade Idea 1:
For Aug 18 expiry selling the $91 put strike for $0.45 or more and buying the $80 put strike for $0.04 or less to form a credit put spread.
4) United Rentals Stock (URI)
The stock closed at $486.56. Next earnings are Oct 24. The stock soared higher on Monday by $20.75. I think the stock will dip back perhaps $5.00 to $7.00. If it does, I plan to enter the trade below.
Trade Idea 1:
For Aug 18 expiry selling the $437.50 put strike for $1.10 or more and buying the $385 put strike for $0.15 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.