Earn Income from Luxory

Thank you all who have been reading and upvoting. I hope to continue to be a resource for as many people as possible.

Trades Update:
On 08/15/2017 I suggested an income generating option trade on CVS. https://steemit.com/stock/@slider2990/it-s-time-to-earned-lots-of-cash

Sell CVS Strike $79 Sep 08, 2017 at $1.07 or better.
CVS stock closed on September 8th 2017 at $79.72 which means the option expired worthless and your capital is free for additional opportunities. Remember if we can do this deal consistently it would generate 20% annualized returns.

Today I would Sell Nov 17 80 Put @ 1.70 or better. The annualized return on this trade is 12%.

On 08/29/2017 I suggested an income generating option trade on GDX.
https://steemit.com/stock/@slider2990/a-golden-opportunity-to-generate-income
Sell October 20, $24 puts on GDX for at least $0.60 each (use a limit order).

GDX has pulled back a bit however that stock still remains over our $24 strike price. Gold and Gold stocks are likely to continue to increase in the short term and this option should expire worthless allowing you to keep the whole $0.60 per share and release your capital so that you can make another trade. I suggest to continue to hold.

New Trade Idea:

Reminder selling puts works especially well on stocks that you wish to own. The biggest benefit is that you are able to name the price you are willing to pay and get paid upfront for the obligation.

The company I am interested in today is Coach. The company is best known for its leather products such as purses and wallets. It has many other luxury product lines as well sold through more than 1000 global stores.

Not only does Coach produce large consistent profit margins of around 13% but the company balance sheet is also very strong. It has more than enough cash to pay off all its debt and healthy cash flow to be able to continue to pay its 3% dividend.

Financially, Coach is in great shape. It holds enough cash to pay off all its debt and still have $1.5 billion left over. This means that Coach will have no trouble continuing to pay its large, 3.2% annual dividend.

A new management team has been installed to return Coach to its premium brand and will continue to divest unprofitable stores.

The stock remains in a volatile but strong two year uptrend. See below.

Trade details:
Sell Nov 17 2017 $41 Put @ $1.35 or better. Please use a limit order. You are agreeing to buy shares at a 2% discount to current share price and an 18.8% annualized return.

(Download the Option Return Calculator right here)

Should the market turn aggressively against us please close the position if Coach stock closes below $37.82.

Thank you for your reading.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.