Episode 443 Option trading podcast September 4, 2026

0:00Welcome to the Weekly Option, the podcast for people interested in trading stock options. Each week we cover trade ideas and opportunities in the stock market right now. Whether you're a beginner, a professional, or just curious about options, this is the show for you. Let's get started. Welcome to the Weekly Option. This is episode 443 on September 4th, 2026. I'm your host Eric, and in this week's show, we'll cover the trades from last week on Critical Metals Corporation, C3 AI Inc, Petroleum Brazilito, and Nike Inc. And we discuss four new trades on Lucid Group, Next Nav Inc, the Nokia ADR, and SoFi technologies. And that's always great to hear from listeners. If you have any questions about the trades presented here on the show, or even about your own positions, feel free to email me. You can email questions to Eric at theweeklyoption.com. That's ERIC at theweeklyoption.com.

1:01I've also created a few videos to teach you all the basics of option trading that you'll need to know to be able to follow along with me on this show. You can visit our website and click on the video, to have to watch them, or visit the YouTube channel for the weekly option. Now the equity markets finished the week nearly unchanged. The Dow Jones Industrial Average lost 145 points, closing on Friday at 53,414 points. The S&P 500 index grew 6 points, ending the week at 7,718 points. And now it's time for the topic of the week. The topic of the week is buying versus selling. Which one is better to do first? There is a significant difference between buying an option versus selling an option. One has all the rights, while another has all the obligations. This is not the context of this question typically though. Most people ask, is it better to buy option spreads or sell option spreads? People seeking income are often told to sell option spreads in order to collect money.

2:04There are also several ways to create income from buying option spreads. So which one should you choose? My answer is whichever one you are more comfortable with. When dealing with option spreads, the risk and reward are known right from the start. It really comes down to the levels that you hope to execute your trades. Out of the money credit spreads typically are 35 cents or less per 1 dollar spread value. Buying in the money spreads versus out of the money spreads also yield two different things. For instance, if you're buying out of the money spreads in hopes of a larger move in the underlying, you'll have a chance to multiply your initial investment. For instance, if I buy an out of the money spread for 35 cents and it goes in the money, I have the possibility of earning 65 cents per 1 dollar spread value. Buying an in the money spread pays less because it does not require a significant move in the underlying price. You just need the stock to continue in its current trend. So whether you decide to buy a spread or sell a spread, the main thing is understanding

3:08the risk associated with both and understanding the math so that you can create positions that are favorable to what you're looking for in the investment markets. That's it for the topic of the week. Let's dive into the review of last week's trades. We're going to start off with our covered call on critical metals corporation, simple C as in Charlie, R as in Romeo, Emma's and Mike, L as in Lima. At the time the stock was trading for $7.13 per share, I looked up buying that stock and selling the September 7.5 call at 45 cents. That could give us an 11.5% return in 3 weeks. Well shares of critical metals grew 14 cents in the week at $7.27 per share. The call option we sold gained 5 cents leaving us with a net profit of 9 cents if we were to close the trade out immediately. Now the stock price is still above the breakeven price so all of our original economics of the trade are still intact. No adjustments are needed at this point.

4:10This one worked out. Next up we have the cash secured put on C3 AI ink symbol A as an alpha I as an India. At the time the stock was trading for $10.54 per share, I looked at selling the September 10.5 put at 71 cents. That could give us a 6.76% return in 3 weeks. For shares of C3 AI lost 9 cents ending the week at $10.45 per share. The out of the money put that we sold is now in the money by 5 cents. Now all of the economics are still in place for the trade since the stock price is nearly 70 cents above the breakeven price. Still you should definitely have a plan for the scenario where you get assigned on the stock. You could also buy the put back outright for 53 cents and lock in an 18 cent profit right now. Either way, this trade is still winning. Do the math before you make any adjustments as always. Next we have our credit spread on Petroly O'Brien Ledo, symbol P is in Papa, B is in Bravo,

5:14or is in Romeo. At the time the stock was trading for $18.53 per share, I looked at selling the September 18.5, 18 put spread at 16 cents. That could give us a maximum possible loss of 34 cents per spread. Now shares of Petro Brazil jumped $1.59 ending the week at $20.12 per share. The out of the money put spread that we sold is still out of the money. The spread has lost about 1 cent of value meaning we could buy the spread back and lock in a small profit now if we like. With the stock price well above the breakeven price, there's no need to make any adjustments at this price at this point, even, or especially just to lock in another cent or two. So just continue to follow the stock price in the coming weeks to make sure that this stock remains above the breakeven price, as long as it does that we will be able to lock in a profit. And then our final trade from last week was the debit spread on Nike Inc symbol N as

6:17in November, K as in Kilo, E is an Echo. At the time the stock was trading for $39.60 per share, I looked at buying the September 39.39 half call spread for 30 cents that could give us the maximum gain of 20 cents or that's a 66.67% return in 3 weeks. The shares of Nike lost $1.19 ending the week at $38.41 per share. The end of the money call spread that we bought is now totally out of the money. And with two weeks left until expiration, it's worth it to consider making an adjustment. I like turning the debit spreads into iron condors by turning that debit spread into a credit spread and then selling a put spread to pair with it. Now, you can sell the 39.40 call spread at 23 cents and then sell the 37.37 put spread at 12 cents. This would allow you to take in 35 cents, which allows you to fully recoup your initial investment.

7:17The trade also leaves you open on 48 cents of risk if one of the spreads expires in the money. For that reason alone, it's worth waiting just a little bit to see if the stock is going to rebound before looking to make an adjustment on this trade. Either way, make sure you do the math, understand what happens if you simply hold the trade and take the loss or if you make the adjustment and actually increase the risk. So do the math, understand, go from there. Right. So that's it for the review of last week's trades. All trades on today's show use the September 18th expiration date. We are only two weeks from expiration. So all of these new trades on today's show are a bit riskier simply because there's limited time to make an adjustment. So we're going to start off with our covered call on Lucid Group, symbol L as in Lima, C as in Charlie, I as in India, D as in Delta, the stock end of the week at $4.67 per share. I'm looking at buying the stock and selling the September 5 call at 17 cents.

8:21That could give us a return of 10.71% in two weeks. And you enter this trade by buying stock for $4.67 per share and selling the September 5 call at 17 cents. This trade makes the most money of stock prices finished above $5 per share. The break human price on this trade is $4.50 per share. In real terms, the stock purchase will require $467 and you'll collect $17 for selling the option. Next, we have our cash secured put on next nav ink symbol and as in November and as in November. The stock end of the week at $15.18 per share. I'm looking at selling the September 15 put at $1.40, hoping for a return of 9.33% on capital at risk in two weeks. The end of the trade by selling the September 15 put at $1.40. This trade makes the most money if stock prices finish above $15 per share in two weeks. The break even price is $13.60 per share.

9:24In real terms, you'll collect $140 for selling the put and you'll have $1500 locked up just in case you need to purchase the stock. Next we have our credit spread on Nokia, the Nokia ADR, symbol in as in November, O as an Oscar, K as in Kilo. The stock end of the week at $10.05 per share. I'm looking at selling the September 10 9.5 put spread at $16.00 that can give us a maximum possible loss of $0.34 per spread. You enter this trade by selling the September 10 put at $0.35 and concurrently buying the September 9.5 put for $0.19. This is a credit spread because we are selling the spread and this trade makes the most money if stock prices expire above $10 per share. The break even price is $9.84 per share. In real terms, you'll receive $16 per spread that you sell and have $34 at risk. Then our final trade for the week is going to be a debit spread on so-fi technologies,

10:25symbol S as in Sierra, O as in Oscar, F as in Foxtrot, I as in India. Back in at the week at $18.20 per share, I'm looking at buying the September 17.5, 18 call spread for $0.33 that can give us a maximum gain of $0.17 or that's a 51.52% return in two weeks. Then you enter this trade by buying the September 17.5 call for $1.11 and selling the September 18 call at $0.78. This is the debit spread because we are buying the spread. This trade makes the most money if stock prices expire above $18 per share. The break even price on this trade is $17.83 per share. In real terms, you'll pay $33 at the end of the spread and your maximum gain is $17 per spread. That's it for this week's show. Thank you so much for listening. Hey, markets will be closed on Monday, September the 7th for the Labor Day holiday in the

11:26United States. Enjoy your long three day weekend. Enjoy the last few celebrations of summer. Let's get this market going next week. I'm so ready for people to get back from vacation. We should see an increase in volume. Next week is of course a shorter trading week with just four days of trading. It's going to be great. Have a great weekend and as always, happy trading. Thank you for listening to the weekly option podcast. Please subscribe to our show and visit us at www.thewikleeoption.com. Disclaimer, there is a very high degree of risk involved in trading. The indicators and strategies described in this podcast are for educational purposes only and should not be construed as investment advice. For our full disclaimer, visit our website at www.thewikleeoption.com.