Now that the JPM $135-$120. put spread is out of the way, having secured for you an average of $45 per spread, ie some 95% of the initial credit you received, let's examine the other April positions of yours.

The COP @$49 and the NEE @$75 put options

NEE has climbed close to its previous highs above $80 and therefore you will walk away with 100% of the income secured when you rolled over to April your previous March sold put option. Not bad at all:)

As for COP, it’s trading a few dollars above the $49 strike on your puts. I recommend you either go ahead and lock down your income here by closing the position or, even better, leave it to expire tonight so that you do not pay any commissions to your broker, either (running of course the tiny risk of this finishing below the $49 mark today. Highly unlikely, if you ask me).

Let's now target a new trade

A May Goldman Sachs Group (NYSE: GS) put spread @ $310-$290.

The almighty investment bank just reported blockbuster first-quarter earnings thanks to increased trading activity, rising asset markets and more.

Per-share profit soared almost 500% to $18.60, well ahead of the $10.22 average estimate. Revenue came in at $17.7 billion, a whopping $5.1 billion ahead of forecasts. Trading revenue jumped 47%. Investment banking fees surged 73%. Deposits at its consumer banking topped $100 billion for the first time. And asset management revenue hit a new all-time high of $4.6 billion. Jeez. It can't get better than this.

Then there’s the technical picture: GS shares rallied sharply in late-2020 and earlier this year. They now appear to be settling into a trading range in the low-to-mid-$300s.

It should generate nice income for you without exposing you to undue risk.

Reminder: Should you decide to close the COP put option, then just Buy to close the Apr 16, '21 COP @49


Sell to open a May 21, '21 GS put @$310 and

Buy (your protection) to open a May 21, '21 GS put @$290

Net income raking around $175 per spread with a staggering 94% probability of winning this trade.


In other news, your May Home Depot, Inc. (NYSE: HD) put spread @ $285-$265 is off to a stellar start. You opened that spread at a net price of $181 only two weeks ago, and it was recently trading for just $50. Stick with the trade because I think you can do even better given the strength in the underlying stock.

Finally, you should have opened a May Newmont Corp. (NYSE: NEM) put spread @$55-$50 last week. Gold established a double bottom around $1,675-an-ounce in March. Then it rallied nicely off those levels and was recently trading around $1,750.

If the basing activity continues, you can bet gold mining shares will hold up just fine. And if NEM can clear overhead resistance around $65.50, then that is music to our ears! Hold your May spread.

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