Today, we are using the stock screener to find stocks with a Buy rating and then looking at a couple of bullish option trade ideas.

First the stock scanner:

Which produces these results:

The two companies we’re going to look at that meet our criteria are Amazon (AMZN) and Palantir (PLTR).

Amazon Bull Put Spread

A bull put spread is a defined risk option strategy that profits if the stock closes above the short strike at expiry.

To execute a bull put spread an investor would sell an out-of-the-money put and then buy a further out-of-the-money put.

Looking at the Barchart Bull Put Spread results for Amazon shows these results:

Let’s use the first line item as an example. This bull put spread trade involves selling the October expiry $220 strike put and buying the $215 strike put.

Selling this spread results in a credit of around $0.87 or $87 per contract. That is also the maximum possible gain on the trade. The maximum potential loss can be calculated by taking the spread width, less the premium received and multiplying by 100. That give us:

5 – 0.87 x 100 = $413.

If we take the maximum gain divided by the maximum loss, we see the trade has a return potential of 21.07%.

The loss probability is 23.2%, although this is just an estimate.

The Barchart Technical Opinion rating is a 100% Buy with a Strengthening short term outlook on maintaining the current direction.

Long term indicators fully support a continuation of the trend.

Palantir Bull Put Spread

For Palantir, let’s also look at the Bull Put Spread results.

Let’s use the first line item as an example. This bull put spread trade involves selling the October expiry $155 strike put and buying the $145 strike put.

Selling this spread results in a credit of around $1.83 or $183 per contract. That is also the maximum possible gain on the trade. The maximum potential loss can be calculated by taking the spread width, less the premium received and multiplying by 100. That give us:

10 – 1.83 x 100 = $817.

If we take the maximum gain divided by the maximum loss, we see the trade has a return potential of 22.40%.

The loss probability is 25.2%, although this is just an estimate.

The Barchart Technical Opinion rating is a 80% Buy with a Weakening short term outlook on maintaining the current direction.

Long term indicators fully support a continuation of the trend.

Conclusion

There you have two different bullish trade ideas on two different stocks. Remember to always manage risk and have stop losses in place.

Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.