Trade of the Week: WW

Trade of the Week

One trade we decided not to make in my 48-Hour Income service was in WW International (WW).

First off, 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.

With WW trading around $4, it seemed like getting 20 cents for selling the 3 puts (right before earnings) could be attractive (it’s over a 6.5% return in two days).

However, low priced stocks can be sneaky in terms of how volatile they can get, and we decided it was not worth the risk.

As it turns out, the stock had dropped to under $3 right after earnings, so it appears we made the right decision to avoid the trade.