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SBN Options Idea for November 2021

Market Summary:

The major indices are all trading modestly higher at midday thanks to a batch of bullish economic releases and corporate earnings reports. Home Depot (HD) and Walmart (WMT) both beat expectations across the board despite the severe supply chain issues, while Lucid Motors (LCID) jumped thanks to its order book growth, riding the electric vehicle craze. European stocks already gave a boost to global risk assets overnight, hitting new all-time highs thanks to the euro’s weakness, as investors shrugged off the continued surge in the number of new COVID cases


Suggested Option Trade:

Sell Puts on Snap Inc. Write(Sell) $50 Puts on SNAP expiring January 21' 2022 at $2.45 Credit

  • Trade: Sell ("sell to open") the January 21' 2022 $50 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 $2.45 or so.

  • Current Stock Price: $54.40

If SNAP trades over $50 at expiration, we will keep the entire credit at a 100% profit. If it trades below $50 at expiration, we happily own the shares at a net price of $47.55 ($50 - $2.45).

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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