I have been writing about the fact that today could be a pivot low for the market and it is trading higher as I write this.
And the bullish percent index is rising as well, which is a good sign.
I would like to make a suggestion on a stock we have traded in the past.
That stock is SNAP. SNAP is trading right above the lower band on the daily chart, which at this point, should offer some support.
And it does have weekly options.
The suggestion today is to buy SNAP at the market, which is $8.92.
Then sell to Open the March 20th - $9 call for every 100 shares you buy.
They can be sold for 38 cents,
These calls expire in one day and if they are not assigned, I will continue to sell more calls against the position.
If the calls are assigned tomorrow, the one day return will be 5.2%.
Limit the stock buy in to 400 shares or 3.5% of the portfolio due to the extreme overall market weakness.