Archive Category: Max Income Alert (Alerts)

Shares of Super Micro Computer Inc. (SMCI) have rallied strongly since mid-July, including a near 20% gain in the shares today following a hugely positive earnings report. This move has now relieved the pressure we’ve been feeling on the put-write position we initiated on the stock in early June. While the dollar amount of profit won’t be large, we have the opportunity today to exit this position profitably and I recommend you do just that …

Shares of Space Exploration Technologies (SPCX) have traded down about 36% since I recommended a “bullish” put-write position on the stock on June 16. Today, we have the opportunity to lock in a profit of more than $100 on the position. Let that sink in … The stock traded 36% lower … and yet, we’ve still made a profit.

By exiting today, we stand to eke out a small profit on the Moderna Inc. (MRNA) put-write trade I recommended on July 9. We sold the $50-strike puts expiring on August 21 for $1.00 and today those can be bought back (remember, we “buy to close” a put-write position to exit it) for $0.80 or less. Shares of MRNA have held steady at the $55 level for a couple of weeks now, but with the put expiring in just 14 days we don’t want to “insure” the risk on MRNA shares dropping $5 lower this close to the expiration date.

As I mentioned on Monday, option trading isn’t a “set-it-and-forget-it” type of thing. Today, we have the opportunity to exit two put-write trades for a respectable profit … so let’s seize it!

Option trading isn’t a “set-it-and-forget-it” type of thing … Proper trade management is key to both maximizing profits and mitigating risk. Today, we have three actions to take. First, we’ll take partial profits on a bullish long-call position that’s been screaming higher.