• Skip to main content
  • Skip to primary sidebar
  • Markets
    • Helping Families Build Wealth
  • Trade Ideas
  • Reflections
  • Links
  • Trading Program
  • Income Model
  • Watch List
  • About
    • Privacy Policy
    • Terms of Service
    • Terms of Participation
  • Login

Zach Scheidt

Helping families build wealth so they can focus on what really matters

INCOME MODEL TRADE ALERT — APA

August 30, 2022 at 2:52 pm by Zach Scheidt

Selling APA puts for income.

APA Corp. (APA) is an oil and gas producer with valuable crude and natural gas resources.

Shares are lower today thanks to a pullback in oil prices. But the overall trend for oil and natural gas is higher. There simply isn’t enough supply on the market. Meanwhile, OPEC+ producers are threatening to cut supplies to help keep prices high.

This is good news for APA and should help the company continue to generate lucrative profits.

We’ve successfully used APA for income plays in the past. One of the things I love about our strategy is that we can go back to the same stock — many times for some companies — and continue collecting more income payments.

By selling the October $35 puts near $1.90, we’re able to collect an annualized yield near 38%, while also giving us roughly $4.20 per share in cushion between the current market price for APA and our strike price.

  • Sell (to open) 2 APA October 21st $35 puts
  • Limit: $1.90 or more
  • The new position will represent roughly 8.1% of our model.
    ~~~~~~~
  • 15:00 Executed
  • Sold 2 APA October 21st $35 puts @ $1.199

(Trade procedure: 5 minutes after this notification posts, I will enter the trade on my brokerage platform. Once filled I will edit this post to include execution prices.)

Please note: I am placing these trades in my own account. And while I notify the group of all trades 5 minutes before I place my own personal trades, this creates a conflict of interest. Please review all disclosures and agreements included with your subscription packet.

Filed Under: income trades Tagged With: $APA

Primary Sidebar

midway

The Fed’s “Battle of Midway”

Today’s Fed decision is a lot like the WWII Battle of Midway. The outcome could shape the course of the market for months to come.

200-day last vegas

Good Things Happen HERE [Charts]

Good things happen when stocks are trading above their 200-day average. Here’s how I use this indicator for my most aggressive trades.

Speculative Tech

Speculative Tech Stocks Face a Double-Dose of Risk

Speculative tech stocks had a great first quarter. But these growth stocks now face two major risks.

banking crisis

The GOOD Side of Today’s Banking Crisis (More Income)

The global banking crisis has caused fear to ripple through the stock market. Here’s how to turn that fear into investment income.

roku streaming

Why I’m Bearish on ROKU (Hint: It’s not about SVB)

Roku streamed an estimated 87 billion hours of content last year. But the company is still losing money. Here’s why I’m bearish.

silicon valley bank closed

My Hedge Against the Silicon Valley Bank Crisis

The Silicon Valley Bank meltdown has triggered extreme challenges for investors. Here’s one way to protect your wealth.

Timing ODTE

Timing ODTE Options (Give Yourself Better Odds)

Timing ODTE options can be extremely difficult (and risky). Here’s a better way to use options for aggressive trades.

ODTE Options

Forget ODTE! The Only Options I Buy For Myself

ODTE (or Zero Days Till Expiration) options are becoming popular with traders. But I prefer different contracts for my aggressive trades.

shopping investments

I Hate Shopping! (But These Consumers Don’t)

A tale of two shoppers… Inflation is challenging budgets for many families, while affluent shoppers continue to spend

surgery

My Two Friends are Going Under the Knife

Now that the pandemic has eased, patients are electing to have surgery. Here are two stocks set to profit.

fed announcement

How I’m Positioned for Today’s Fed Announcement

Today’s Fed announcement could be an important turning point for the market. After a January stock market rally, Powell has some work to do!

Share buybacks

No Biden, Share Buybacks are NOT Bad

Chevron’s $75 billion share buyback program is catching flack from the White House. But this is how it’s SUPPOSED to work!

Bitcoin rebound

Is This Bitcoin Rebound For Real?

The bitcoin rebound is picking up momentum. Here are some ideas to help you grow and protect your family’s wealth.

bear market rallies

Here’s Why Bear Market Rallies are So Powerful

Bear market rallies can be frustrating for BOTH bullish and bearish traders. Here are some catalysts behind these powerful market moves.

gold stocks

Three Ways to Play Gold’s 2023 Surge

Gold is surging higher to kick off the new year. Here are three ways to invest in gold and gold stocks to profit from the trend.

DISCLAIMER: Stocks and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the stocks and options markets. Don't trade with money you can't afford to lose.

This is neither a solicitation nor an offer to Buy/Sell stocks or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this page. The past performance of any trading system or methodology is not necessarily indicative of future results.

All trades, patterns, charts, systems, etc., discussed on this page are for illustrative purposes only and not to be construed as specific advisory recommendations. Information contained on this site or in any correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Arete Publishing, LLC · Copyright © 2023 · All Rights Reserved
Privacy Policy · Terms of Service · Terms of Participation · Log in