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We are considering an income trade with an existing MOMO position. We intend to generate additional weekly income in the process. In addition, we have a few picks that popped up on our scan Monday night.

MOMO Income Trade

MOMO is drifting sideways above VBP support levels, with RSI pointing higher. We want to sell the August 18 44C for 1.20 or better for every 100 shares that we own. A new position could also be taken, buying increments of 100 shares and immediately selling the August 18 44C for 1.20 or better. This trade last 4 days and will expire this Friday. MOMO reports earnings next Tuesday on August 22.

This trade will last 4 days, expiring this Friday. MOMO reports earnings next Tuesday 08/22.


Additional stocks we are where we are considering selling covered call positions. All of these expire in 4 days (Friday).

CLR Close 33.32 (-1.22) – Sell 18-AUG 33.0C (4 days) Bid 0.75

  • Net cost basis 32.57
  • Downside protection 2.3%
  • Gain if unchanged 1.3%
  • Gain if assigned 1.0%

BRKS Close 25.25 (+0.49) – Sell 18-AUG 25.0C (4 days) Bid 0.50

  • Net cost basis 24.75
  • Downside protection 2.0%
  • Gain if unchanged 1.0%
  • Gain if assigned 1.0%

NRG Close 25.47 (+0.80) -Sell 18-AUG 25.0C (4 days) Bid 0.65

  • Net cost basis 24.82
  • Downside protection 2.6%
  • Gain if unchanged 0.7%
  • Gain if assigned 0.7%

These short term selections are preferred as they have one week or less to expiration. Less time exposure to the market news, politics and nonsense equals less risk.

Stocks with a price between 20 and 200 are scanned. We look for selections with larger premium income (greater than 0.50 BID) with their stock prices trending higher along or above its 20-day moving average. Earnings threshold is set to grow at a greater than 5% annual rate and the company must not have an earnings announcement pending during the trade. Options selected are at least 1% in-the-money (ITM). 

Futures are higher and most of our swing positions are green.

Happy Tuesday,


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