I don't want to risk a big decline with CMCSA after VZ cratered on earnings. Plus, we'll roll CSCO to earn more income sooner than expected.

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Homepage Portfolio FAQ Trade Alert: Two More Earnings-Season Moves to Make Stocks bounced a bit early this week, but trading is mixed today: the Dow and small caps are under pressure, while the S&P 500 and the Nasdaq 100 are up. That's why I have two more earnings-season moves for you to make today. First, we are short Comcast (CMCSA) April 26, 2024 $39 puts. So, our option expires Friday while CMCSA is set to report earnings tomorrow before the opening bell. Another communications sector blue-chip, Verizon (VZ), reported early this week; despite beating estimates, VZ shares still cratered nearly 5% after the results. In this skittish market, I don't want to take the risk of a big decline with CMCSA. Right now, the option remains about $1 out of the money. But it makes sense to close it now at breakeven, or even a small loss, instead of getting put CMCSA stock that could be deep underwater. Second, Cisco Systems (CSCO) doesn't report for several more weeks. Our covered-call option is far out of the money. So, it makes sense to roll this option now to earn more income sooner than expected. Here's what to do. Actions to Take... 1. Buy to close the Comcast (CMCSA) April 26, 2024, $39 put (CMCSA240426P00039000) at $0.60 or less, good 'til canceled. Note: Since CMCSA earnings are tomorrow morning, consider adjusting your limit price as needed to get filled by today's close. 2. Buy to close the CSCO May 10, 2024, $50 call option (CSCO240510C00050000) and at the same time sell to open the CSCO May 17, 2024, $51 call option (CSCO240517C00051000) for a net credit of $0.25 or more, good 'til canceled. Note: Aim to buy back your existing call option for about $0.15 or less and sell the new option for $0.40 or more, resulting in a $25 net credit. Also, stay tuned for more Ultimate Income trades plus more updates soon. Good investing, Mike Burnick Senior Analyst, Ultimate Income 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. Customer Support: 866.385.2076 | support@tradesmith.com Mailbag Questions ©2024 TradeSmith, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of TradeSmith, LLC. This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as researchers and writers. Our work may contain errors and should not be considered personalized investment advice. TradeSmith, LLC does not issue securities recommendations, and no discussion of a particular stock(s) should be interpreted as such. Past, simulated, and/or hypothetical performance of any strategy published by TradeSmith, LLC should not be interpreted as representational of future returns. You shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. TradeSmith P.O. Box 340087 Tampa, FL 33694 Terms of Use Privacy Policy To unsubscribe or change your email preferences, please click here.

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