It’s summer and everyone is on the move…
…and that’s usually a boom-time for travel stocks.
That’s why I like the travel sector when it comes to selling options.
And a stock I really like but have not recommended for several years is doing the same — TripAdvisor (TRIP) [stock_market_widget type=”inline” symbol=”TRIP” template=”basic” color=”default”].
After having its share price cut in half, TRIP bottomed out in November. While shares have roughly doubled since then, they continue to trade at a discount to the market.
The company reported better-than-expected earnings in May, and it appears problems with its advertising-based business model are now being managed.
With the stock trading around $57 and strong support at $55, I recommended that my Options Income Blueprint members sell a 56 put strike one week from expiration for $0.65 or $65 per contract.
TRIP stock gently glided up and we watched our put option expire worthless and we collected $185 on the three contracts we sold!
Make the trade once a month for the next year and collect another $2,220…enough to pay for your next vacation ahead of time.
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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. He 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 he is a frequent contributor to reputable financial sites like Seeking Alpha, MSN, MainStreetInvestor, and Traders Reserve.
Most importantly, since 2010, he has dedicated himself to teaching income investors how to get more income from their portfolios using simple yet safe options selling strategies which produce income every week. This approach was developed from the ground up in Mr. Shulman’s own accounts, his goal to develop a strategy that cannot be replicated by institutional investors of any size and therefore independent of fads and trends that change too often to provide a consistent approach for individual traders.
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.