The Latest Breaking News from SCHW

Charles Schwab (SCHW) is navigating through a challenging landscape evident from its grim third quarter results. With the company’s fourth quarter results on the horizon, what strategic move should investors contemplate regarding this stock? Read more to find out….

Recently, Charles Schwab (SCHW) unveiled a mosaic of financial outcomes for the fiscal third quarter, set against the backdrop of a challenging economic terrain characterized by soaring interest rates and inflation. So, does it make sense to dive into SCHW and seize the opportunity, or is it wiser to steer…

Charles Schwab stock is still trading well below what it is worth. That is good news for traders who short-sell out-of-the-money (OTM) covered calls and cash-secured puts to create extra income.

Shorting out-of-the-money (OTM) puts in Charles Schwab stock still makes sense. It allows investors who are long in the stock to make extra income as well as lower their average buy-in cost.

One of the online broker’s put options had a volume of 15,344 on Wednesday, 108.82x its open interest. I can think of at least three reasons why that’s the case.

Investors who have shorted out-of-the-money puts in Charles Schwab stock have been making good money. SCHW stock is still cheap based on earnings, making this a good play for investors.

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.