The Latest Breaking News from SCHW

Charles Schwab reported better-than-expected Q2 2023 results. Its shares have jumped 12% in Tuesday trading. Now, only down 20% year-to-date, its stock’s got a shot of turning positive by Christmas.

Charles Schwab beats expectations despite posting a major drop in earnings. Schwab stock soared 12% early Tuesday following results.

Investors in Charles Schwab stock have found that it is still cheap, as we discussed in recent articles. As a result, shorting its out-of-the-money puts has now become a very popular income play.

Charles Schwab produced slightly better earnings than expected on April 17, although revenue fell short. Its put options have had unusual options activity, providing unique income plays.

Yesterday, with SCHW trading at 55.55, the May put option with a strike price of 52.50 was trading around $1.20. Traders selling this put would receive $120 in option premium. In return for receiving this premium, they have an obligation to buy 100 shares of SCHW for $52.50.

Charles Schwab stock rose Monday after it beat Q1 earnings estimates. M&T Bank, State Street report results following March bank panic.

Charles Schwab stock has tumbled 11% in the last month, making its put options very popular with investors who are shorting near-term out-of-the-money puts in an attractive income play.

Micron Technology and Charles Schwab were among the top S&P 500 stock performers on Monday. Expedia was a notable loser.

Calendar spreads are an option trade that involves selling a short-term option and buying a longer-term option with the same strike. Traders can use calls or puts and they can be set up to be neutral, bullish or bearish with neutral being the most common.