Make Over $6k in 3 Months – See How We Did It
October 2nd, 2020
We closed the books on the third quarter this week. While stocks lost momentum in September, the S&P 500 still managed to advance 8.5% in just three months, making a series of new highs as it continued its historic recovery from the March downturn.
It was a good quarter for us at Options Income Blueprint as well. We closed two more wining positions last week, bringing our Q3 total to 28 winners, one breakeven trade and zero losers.
Traders who sold just one contract of each of these positions could have made $2,005 in income.
We saw a number of repeat winners in the third quarter as we focused on trading the familiar. They included:
- Online pet retailer Chewy (CHWY) with two trades for $117 in potential cash;
- Pharmacy operator CVS Health (CVS) with two trades for $130 in potential cash;
- Semi stock Advanced Micro Devices (AMD) with two trades for $141 in potential cash;
- Fitness product maker Peloton Interactive (PTON) with three trades for $148 in potential cash;
- Payment processor Square (SQ) with two trades for $219 in potential cash;
- Glassmaker Corning (GLW) with five trades for $222 in potential cash; and
- Post-split Apple (AAPL) with two trades for $465 in potential income.
While everyone is familiar with Apple, it was new to the Options Income Blueprint universe.
I have long been a bull on the company. But its high share price — with the stock briefly surpassing the $500 level in late August — meant it was out of reach for many members.
When you sell a cash-secured put, you must have enough money in your brokerage account to cover the cost of being assigned 100 shares at the strike price you sold. So, let’s say you sold a 450 strike put on AAPL. You would need to put up $45,000 in capital to cover a single contract!
But the company completed a 4-for-1 stock split — the first one in six years for the tech giant — on Aug. 31, with shares opening at $127.58 that day.
We successfully traded the stock twice since the split and I will be looking for additional opportunities to generate income from AAPL in the months ahead.
We also had great success with some other new names, such as Marvell Technology Group (MRVL) and Tractor Supply (TSCO).
Marvell is a semiconductor company that makes components for the high-growth areas of 5G, cloud, artificial intelligence, Internet of Things and automotive spaces.
Tractor Supply is a rural and “ex-urban” purveyor of everything from flannel shirts to tractors that saw sales increase dramatically during the pandemic, help by its designation as an essential retailer.
It’s possible these names will become part of our regular roster of income-generating stocks, which also includes names like Target (TGT), First Solar (FSLR), Bank of America (BAC) and Roku (ROKU).
I expect volatility to increase as we head into the November election and possibly hang around for weeks or months afterward as we try to sort out the results.
The heightened volatility levels should help our option-selling strategy as we look to capitalize on juicy premiums. In short, I’m optimistic about what the fourth quarter will hold for Options Income Blueprint members.