Taking Profit on SNAP and Scaling QYLD/XYLD
Good morning Titans!
Some trade updates for our Horizon List.
UAL
An aggressive trade today on UAL after positive earnings. Even with the market selling off hard, UAL took off after earnings. I've sold puts on it now for just a couple of months. UAL is shooting up for the second. The 50s levels were back in August of 2023 so that's why this one is a bit aggressive.
Sell the 49 Strike Put expiring May 24, 2024 for 1.37 or better.
If UAL holds above 49 through May 24th, then we keep the entire premium of $137 which is 2.7% over 36 days which annualizes to 28%!
If UAL trades below 49, we'll be assigned 100 shares at 49 and will keep the premium. Our breakeven stock price will be all the way down to 47.63. Not too shabby.
SNAP
Look to take profit on SNAP. If you sold the put option at 10.50 expiring tomorrow, this option is now at over 90% profit. Can close it out and move on!
If you sold the option expiring next Friday, that option is back to break even at least and we'll look to close it the day before earnings for any profit. I'll send another update next week.
QYLD/XYLD
If you hold some of your cash in these yield producing ETFs, then the next dividend distribution for both is on 4/22. I look to scale into the position by just buying a few shares AFTER it trades ex-dividend. You'll notice a drop in the price from the dividend, then buy some.
FSLY
Fastly is holding in there! As it trades around the 12.50s, we'll just keep selling call options on it. For now, we're not quite ready to roll that 13 strike call from last time but we'll be there soon.
If you're not in the FSLY trade, you could look to enter now with a lower strike put option.
Sell FSLY 24 May 24 11.5 PUT Contract @0.76 LMT
This would put you in well below $11 and is offering great income now that VIX is up due to the volatility this week. However, we'll only be selling more puts on FSLY after earnings in 13 days.
The spreadsheet has been updated with the SNAP closing trade. Next will be F which is also in the money after the sell off this week. We'll look for F to recover 12.50s!
Disclaimer: The content of this newsletter is provided for informational purposes only and is not intended as financial advice, investment recommendation, or an endorsement of any particular security, strategy, or investment product.