Trade of the Week: ABR and BE

Trade of the Week

 Last week, in my 48-Hour Income service, we sold cash-secured puts on real estate finance company Arbor Realty Trust (ABR) and renewable energy company Bloom Energy (BE). 

In 48-Hour Income, the goal of the service is to generate 1% to 3% returns per week by selling 2-day puts in certain stocks. Both ABR and BE had elevated put premiums due to upcoming earnings.

The ABR trade worked out really well as the stock never came close to our strike after earnings were released.

However, BE missed earnings and dropped just below our strike at expiration. Nevertheless, for the week, we collected a net positive credit.