Buy Call WMT

June 21, 2024
Sell a Third of Existing Position: Sell a Third of your WMT January 65 Calls for $6.80 or more.

WMT is breaking out to a new high today and we are going to take advantage of this stock strength to lock in a profit of approximately 60% on the second third of our position.

To execute this trade you need to:

Sell to Close a Third of your WMT January 65 Calls

While I think WMT stock looks great, and I anticipate it will continue to move higher, we are going to stick to the system and sell another piece today, and will hold the balance looking for much greater gains in the weeks/months to come.

June 7, 2024

Covered Call: Buy Lyft (LYFT) Stock and Sell the June 16 Call (exp. 6/21) for a net price of $15.60 or less.

Despite the market trading at new highs, under the surface the action in countless stocks has been less impressive, and maybe even concerning. Essentially, it feels like the market is a toss-up right now as I could see it falling, trading sideways, or moving higher.

Today, let’s play the sideways/moving higher game by selling a covered call in Lyft (LYFT) which upped its guidance on Thursday and received several upgrades today.

To execute this trade you need to:
Buy LYFT Stock
Sell to Open the June 16 Call.

The most you can make on this trade is $40 per covered call should LYFT close above 16 on June expiration, or a yield of 2.56% in two weeks’ time. (You should beat my recommended price as usual, which would bump up the profit/yield noted above.)

The most you can lose on this trade is $1,560 per covered call if LYFT stock were to go to zero.

The breakeven on this trade is 15.60.

Essentially, let’s see where the market and LYFT are on June expiration, and if the stock is mostly unchanged, or higher, we will walk away with a small but decent yield in a short amount of time … and if the stock is below 16, we might continue to sell calls via the July expiration cycle.