Last Week’s Income Report:
May 3, 2021
The S&P 500 hit yet another new high on Thursday but closed flat for the week. For the month, though, the broader market index rose 5.2%, its biggest one-month gain since November.
Investors had quite a bit to cheer in April. This included falling coronavirus cases in the United States and positive economic data as the country continues to reopen. We also saw strong corporate earnings reports, particularly from the major banks and big-tech names.
At Options Income Blueprint, we also had a lot to cheer last month.
April was our second-most profitable month so far this year, behind January. We closed 13 successful positions in a row, earning $1,398 in income.
Below is a quick rundown of April’s winners.
There are some familiar names on that list, like General Motors (GM), which we’ve traded six times already this year. Traders who sold just one contract of each of those trades could have earned $457 in income from that stock alone.
We’ve also closed four profitable trades in CVS Health (CVS) this year, using a mix of puts and calls, collecting $392 in cash. And April’s Bank of America (BAC) trade was our sixth thus far in 2021, allowing us to generate $246 in total income.
There were also a few newcomers on the list, including SPDR S&P Regional Banking ETF (KRE) and Invesco Solar ETF (TAN).
Selling options on exchange-traded funds is not something we do often at Options Income Blueprint. At least not historically.
That’s because ETFs are generally less volatile than individual stocks. And lower volatility translates into lower option premiums.
But I’ve noticed recently that a handful of ETFs have begun throwing off some great premiums, making them ideal for our option-selling strategy.
So, in addition to KRE and TAN, members may see me add another ETF or two to our trading roster in May.