It was good few days for “weekly paycheck” traders.
In just 5 trading days, we closed 4 “weekly paycheck” trades for over $300 trading just one contract.
We did it with a combination of selling short-term weekly and monthly options.
We reduced risk to our capital and boosted returns by closing all of the positions early.
And that gave us a nice “weekly paycheck” in just 5 short days.
Here is how these trades played out.
A Speculative Biotech Leads the Way
It started with Exact Sciences (NASDAQ: EXAS), a stock that we’ve had great success with recently. The last time we traded this stock, we earned a 192% annualized return on a trade open just two days.
EXAS is a molecular diagnostics company that manufactures Cologuard, the only FDA-approved non-invasive screening test for colorectal cancer that can be done at home.
While Exact Sciences is not yet profitable, which is not unusual for a biotech firm at this stage, the growth of Cologuard has been impressive.
Two weeks ago we sold an EXAS 92.50 monthly put option, which generated a big chunk of cash at $2.72 per share or $272 per contract.
10 days later the stock started running with the market and we closed the position early. We bought our monthly option back for $1.25 that resulted in a $1.47 or $147 per contract profit in 12 trading days.
It might look like we exited the trade too early but when a $92 stock makes a 5% move in less then 2 weeks, you don’t pass up the cash.
Up Next Mobile Payments
The payment-processing sector is one of the most lucrative spaces for income traders like us who use short-term options to generate cash.
PayPal (NASDAQ: PYPL), which is one of my favorite companies and stocks to trade in the payment-processing space.
The stock has been on a tear, nearly tripling in price in the past three years, and it shows no sign of slowing down. More importantly for us, its options are liquid and throw off terrific premiums.
We sold a PYPL 107 weekly put option for $0.88 per share or $88 per contract.
Over the next few days PYPL stock continued to climb and resulted in our put premium dropping dramatically. We closed the trade early buying our back put contract for $0.30 and collected $0.58 or $58 a contract in profit.
Into Consumer Staples
CVS Health (NYSE: CVS) has struggled so far this year, due to a weak Q1 earnings report, fears of Amazon (AMZN) entering the prescription drug business and regulatory hurdles facing its Aetna acquisition.
But I remained bullish on the stock. In addition to the company’s strong fundamentals and the potential growth opportunity that the Aetna merger presents, management is making wise choices about how to spend its money.
The stock has found support at $52.50, and we sold a weekly CVS 52.50 put for $0.48 or $48 per contract.
The stock moved slightly up and we took profits early ending up with $0.31 or $31 per contract with a nice annualized return of 31%.
Back to Digital Payments
We sold a SQ 60 weekly put option for $1.33 or $133 per contract and closed it early to lock in $0.67 or $67 contract of cash profit.
That was our 24th successful trade of Square in a row!
And that was over $300 of weekly paycheck option trades closed in one 5-day period!
Had you been trading 3 contracts (as many of our Options Income Blueprint Members do) on all 4 trades you would’ve walked away over $900 of cash income for that week.
You can join us starting this week.
My Options Income Blueprint members are already working our next “weekly paycheck” trade for this week. Start collecting cash immediately when you take my Options Income Blueprint 60-Day Test Drive.
About The Author
Michael Shulman is a 30 Year Veteran of the financial markets – as a trader, a financial analyst, a financial writer and most recently as an educator.
Mr. Shulman made his first option trade in 1985 – COMPAQ Computer calls – a position that expired worthless. His second trade broke even; the third brought him a year’s salary, a near twenty to one return on his investment. Michael has never looked back. He entered the financial publishing business formally in 2001 as director of research for ChangeWave Research’s institutional research business and as the writer and editor of Hedge Fund Investing.
He has published two books – Sell Short and Made in America – both of which can be found on Amazon.com and is a frequent contributor to reputable financial sites like Seeking Alpha, MSN, MainStreetInvestor, and Traders Reserve.
His trade recommendations in his Options Income Blueprint, Perpetual Income Portfolio Club and Income Masters services maintain a 98% success ratio, meaning his trades produce the expected income 98% of the time. No one’s perfect.