Archive Category: Max Income Alert (Alerts)

Shares of Space Exploration Technologies (SPCX) have only been trading for seven sessions and already it’s been a wild ride – is anyone surprised?! With just a glance at the stock’s daily chart, the obvious joke is that it looks like one of the company’s reusable rockets … and that that rocket has now touched back down to its original launch pad — $150 a share.

Two trades to make today … including one on Space Exploration Technologies (SPCX). Before that one, though, we’ll take final profits of around 175% on the $46-strike XLB calls we’re holding. Let’s dive into the details!

Today, I have one action I’m recommending you make … This involves “rolling” the put-write trade we have open on Super Micro Computer Inc. (SMCI). Let’s get right to it …

I’m pleased to report that after seeing bullish price action in shares of Moderna, Inc. (MRNA) over the past few sessions, we can take action to lock in profits on our put-write position and capture 50% or more of the Max Deal Value we targeted. We recorded an entry (“sell”) price of $1.30 on this trade on June 1, and now the contract can be exited at an estimated (“buy”) price of $0.60. Assuming we get out at around that price, this trade will net us about $70 per contract. Considering that was secured in just three days and against a fully cash-secured collateral of $3,700, we’ll be exiting with an annualized yield on collateral of over 230% … far better than the roughly 32% yield we were targeting.

I’m out of the office tomorrow, so I’m sending your weekly Max Income Alert a day early. Good news is … we have two new put-write opportunities to act on! Before we dig into the details on these trades, I wanted to share a standing reminder about the basic mechanics of the put-write trade …