Trade Alert: 3 Money-Making Moves to Make ASAP

Ultimate Income members should have been filled earlier this week selling covered calls on two of our stocks: Tyson Foods (TSN) and Weyerhaeuser (WY). But you were most likely NOT filled selling Coterra Energy (CTRA) puts, since the option never traded above the $0.20 limit price.

If you were filled at or slightly below $0.20, great. But if you were NOT filled, then cancel your CTRA put option order and replace with the new order shown below.

At the same time, our Archer-Daniels (ADM) covered call option expiring this Friday is far out of the money. Let's be proactive and roll this option early to earn more premium income sooner.

Finally, our cash-secured put on Microchip Technology (MCHP) is likewise far out of the money. Too far to have a realistic chance of buying this quality tech stock at a discount. So, let's also roll this position now.

Here's what to do.

Actions to Take:

1. Sell to open the Coterra Energy (CTRA) Dec. 29, 2023, $25 put option (CTRA231229P00025000) at a limit price of $0.20 or more, good 'til canceled.

Note: Place this new CTRA option trade ONLY if you weren't filled on the previous trade recommended on Monday.

2. Buy to close the Archer-Daniels (ADM) Dec. 1, 2023, $76 call option (ADM231201C00076000) and at the same time sell to open the ADM Dec. 23, 2023, $77 call option (ADM231222C00077000) for a net credit of $0.20 or more, good 'til canceled.

Note: Aim to buy back your existing call option for about $0.05 or less and sell the new option for $0.25 or more, resulting in a $20 net credit.

3. Buy to close the Microchip Technology (MCHP) Dec. 15, 2023, $70 put option (MCHP231215P00070000) and at the same time sell to open the MCHP Jan. 19, 2024, $77.50 put option (MCHP240119P00077500) for a net credit of $0.75 or more, good 'til canceled.

Note: Aim to buy back your existing put option for about $0.15 or less and sell the new option for $0.90 or more, resulting in a $75 net credit.

Get these trades placed right away and stay tuned for more updates and trade alerts.

Good investing,

Mike Burnick
Senior Analyst, TradeSmith

P.S. If you have any questions or concerns, please reach out to me at emailmikeburnick@tradesmith.com and include "Ultimate Income" in the subject line.

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