📢 My Stock Pick and Technical Analysis for Monday, July 1, is Now Live! 📈
Today, I'm initiating a cash-secured put income play on a stock that's showing improving conditions, kicking off the first step of a wheel strategy trade.
Introducing the Wheel Strategy Play
As promised, and in response to subscriber requests, I'll be publishing a wheel strategy play every Monday, and managing the trade from start to finish.
Having religiously used the options wheel strategy for years, I have it down to a science. I use a customized scan to identify the highest-yielding opportunities on highly liquid stocks and ETFs. 🧬🔍 My scan updates daily, giving me a steady stream of potential trades, so if you'd like me to include more like this in my daily plays throughout the week, just let me know.
Today's introductory play is free for all subscribers and you only need Level I approval to trade CS puts and covered calls. If you find it valuable, please share and restack it. 👍🔁 Now, let's dive in! 🚀
Strategy: Cash Secured Put $CLSK
Consider selling the Jul 26, 2024, $15.50 put option on CLSK to potentially acquire the stock with a 10.16% discount. You will collect $143.00 in premium per contract and have an obligation to purchase 100 shares of the stock at a net price of $14.07 if the stock closes below $15.50 and the put option is exercised by the buyer.
Technical Summary $CLSK: Over the last 50 trading days, when compared to the S&P 500, the stock has performed in line with the market. CLSK's chart formation suggests an upward trend is beginning. Over the last 50 trading sessions, there has been more volume on up days than on down days, indicating that CLSK is under accumulation, which is a bullish condition.
The 50-day moving average is pointed up but the stock is trading below this important resistance level. A move above this would further validate the improving technical condition. CLSK is above its rising 200-day moving average which is pointed up adding to the stock’s improving technical condition.
Entering The Trade:
Bid: $1.35 Mid: $1.43 Ask: $1.50 Avg Premium: $1.43
Please note that these prices are based on Friday’s closing prices. Should the underlying move significantly during the pre-market hours, use your discretion.
$CLSK Cleanspark Inc
Trade Checklist:
Probability of Worthless: The strategy you have selected to sell has a 49.33% chance of expiring worthless.
Annualized Return: The strategy you have selected to sell has a 289.17% annualized return which is very good.
Earnings Date: There are no earnings between now and the expiration of your strategy.
Spread & Liquidity: The bid/ask spread of this trade is very large. It is highly recommended that a limit order is placed near the MID price to minimize the impact of the spread on your strategy.
*Disclaimer The examples in The Options Oracle are my opinion and not financial advice.
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Got any questions about this trade or the wheel strategy? Share them in the comments below.👇 Let's learn and grow together! 🗣️💬
Huge pop this morning. Still worth jumping in if we missed the open?
Do you have a spreadsheet that we can track our trades in, that you’d be willing to share?