The major indices are all trading higher following another active and bullish morning session on Wall Street with the debt ceiling drama, the economy, and inflation in the spotlight. Global risk assets got a boost from the rumors suggesting that a debt deal, albeit a slimmed-down version, could be struck as soon as today, which would eliminate the risk of a potentially damaging technical U.S. default. On a negative note, the Core PCE Price Index, the Fed’s preferred inflation measure, printed at 0.4%, slightly above the consensus estimate, reinforcing speculation about another rate hike from the Central Bank in June!
Suggested Option Trade:
Sell Puts on Darden Restaurants, Inc. Write(Sell) $150 Puts on DRI expiring July 21' 2023 at $2.85 Credit
Trade: Sell ("sell to open") the July 21' 2023 $150 put.
Allocation: Size the position according to your portfolio size and how much you're comfortable investing.
Price Guidance: Aim to receive a net credit of $2.85 or so.
Current Stock Price: $161
If DRI trades over $150 at expiration, we will keep the entire credit at a 100% profit. If it trades below $150 at expiration, we happily own the shares at a net price of $147.15 ($150 - $2.85).
You will need to manage the trade till expiration or closure yourself, and no further guidance will be issued. If you need any help, you may reach out to us. Disclaimer: Options trading involves substantial risk. The valuation of stock and options may fluctuate, and as a result, in some cases, members could lose more than their original investment. In no event should the content of this correspondence be construed as an express or an implied promise, guarantee or implication by StockBuzzNow that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
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