November 29, 2022

Cabot Options Institute Income Trader – Alert (GDX, KO)

VanEck Gold Miners (GDX)

As part of the Income Wheel approach, we allowed our GDX calls to expire in the money at expiration last week. As a result, our shares were “called” away at the price of 26, and we locked in 3.87% on the trade.

Today, as our Income Wheel strategy states, we are going to start the Income Wheel approach again in GDX by selling more puts.

GDX is currently trading for 28.03.

Here is the trade:

Sell to Open GDX January 20, 2023, 26 puts for $0.87.

Coca-Cola (KO)

Just like in our GDX trade above, as part of the Income Wheel approach, we allowed our KO calls to expire in the money at expiration last week. As a result, our shares were “called” away at the price of 60, and we locked in 3.75% on the trade.

Today, as our Income Wheel strategy states, we are going to start the Income Wheel approach again in KO by selling more puts.

KO is currently trading for 62.23.

Here is the trade:

Sell to Open KO January 20, 2023, 60 puts for $0.84.

Andy Crowder

Andy Crowder is a professional options trader, researcher and Senior Analyst at Cabot. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.