The markets went up again with the DOW30, S&P500, and NASDAQ ending +0.61%, +1.8%, and +2.6%, respectively. It's nice to see some green!
Steve's Trades
AMZN
AMZN Cash Secured Put
Expiration Date: October 6, 2023
Step 1: Have $13,700 of cash as collateral Step 2: Sell 1 $137 strike put option (delta -0.45) for $335 I'm choosing the $137 strike option to get more premium from the at-the-money strike. We're also still trending in the upwards yellow channel.
AMZN LEAPS
Expiration Date: June 20, 2025 Step 1: Buy 1 $100 strike call option (delta 0.79) for $5,335; this is lower risk but higher in price
Or...
Buy 1 $110 strike call option (delta 0.75) for $4,650; this is slightly higher risk but lower in price
Side Notes:
This week, I purchased a $110 strike AMZN LEAPS with an expiration of June 20, 2025. I'm using the premiums I've been collecting over the past several months to slowly scale into some of these lower risk leveraged options.
Again, make sure you understand the Greeks and have experience with selling options before buying options. You also may want to reduce your risk by buying the LEAPS with at least half of the cost coming from covered calls and cash-secured put premiums.
I'm planning on selling my AMZN LEAPS if I can get a 10% profit within the next couple of weeks or a couple of days before the next earnings date.
Remember, feel free to tweak any of these numbers to fit your own risk tolerance and what your portfolio is able to handle. As always, investing is a marathon, not a sprint. You'll be on your way to financial freedom as long as you invest consistently.
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-Steve and the Call to Leap Team
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