🔒 Membership Positions - June 27, 2021

Hi Everyone!

What a fantastic week in the markets! The S&P500 and NASDAQ hit another all-time-high! The DOW30 didn't do too shabby either!

Here's SPY:

Here's QQQ:

Here's DIA:

If you take a closer look, notice that these indexes are over a span of a year. Not too bad for a one year performance, huh?

Trade of the Week:

If your covered calls expired worthless this Friday, we recommend selling more calls at around the same strike price as before to collect more premium. If you were assigned your 100 shares from your cash-secured put, you can sell a call against your shares and convert your trade into a covered call trade.

Pay attention to the delta: You can always look at the delta of the call you are selling since the delta roughly approximates the probability of the price of the stock reaching the strike by expiration. If you see that the delta is 0.10, you know that there is roughly a 10% chance that the price of the stock will reach that strike price by expiration. Likewise, if you see that the delta is 0.20, you know that there is roughly a 20% chance that the price of the stock will reach that strike price by expiration.

If you're a beginner, we recommend you starting off with selling cash-secured puts around 1-3 strikes OTM. This is typically a conservative starting point when starting the Wheel Strategy. If you have been using the Wheel Strategy for a while and have a more bullish outlook, we recommend starting your new Wheel by selling a covered call around 1-3 strikes OTM to not only receive the premium, but also make capital gains if you are called away at expiration.

Since it looks like we are progressing forward, you can consider selling shorter dated OTM covered calls, around 2-3 weeks out. We would only recommend this to members if they've been trading the Wheel for a while and have a general understanding of how theta and delta work.

Here are some trade recommendations and see what fits your personal risk-tolerance:

MSFT
 Monday Open: $259.82
 Friday Close: $265.02
 5-day change: 2%

 Starting a New Wheel: Selling a Cash-Secured Put on MSFT
 - MSFT's Current Price: $265.02
 - Capital Needed: $26750.00
 - Sell at the Expiration Date: 2021-07-23
 - Select the Strike: $265
 - Premium you'll receive: $600.00
 - Cost Basis: $265.00 - $6.00 = $259.00

 Starting a New Wheel: Selling a Covered Call on MSFT
 - MSFT's Current Price: $265.02
 - Capital Needed: $26502.00
 - Sell at the Expiration Date: 2021-07-23
 - Select the Strike: $267.5
 - Premium you'll receive: $497.00
 - Cost Basis: $265.02 - $4.97 = $260.05

AAPL
 Monday Open: $130.30
 Friday Close: $133.11
 5-day change: 2.15%

 Starting a New Wheel: Selling a Cash-Secured Put on AAPL
 - AAPL's Current Price: $133.11
 - Capital Needed: $13400.00
 - Sell at the Expiration Date: 2021-07-23
 - Select the Strike: $133
 - Premium you'll receive: $267.00
 - Cost Basis: $133.00 - $2.67 = $130.33

 Starting a New Wheel: Selling a Covered Call on AAPL
 - AAPL's Current Price: $133.11
 - Capital Needed: $13311
 - Sell at the Expiration Date: 2021-07-23
 - Select the Strike: $134
 - Premium you'll receive: $318.00
 

AMD
 Monday Open: $83.49
 Friday Close: $85.62
 5-day change: 2.55%

 Starting a New Wheel: Selling a Cash-Secured Put on AMD
 - AMD's Current Price: $85.62
 - Capital Needed: $8600.00
 - Sell at the Expiration Date: 2021-07-23
 - Select the Strike: $85.5
 - Premium you'll receive: $300.00
 - Cost Basis: $85.50 - $3.00 = $82.50

 Starting a New Wheel: Selling a Covered Call on AMD
 - AMD's Current Price: $85.62
 - Capital Needed: $8562.00
 - Sell at the Expiration Date: 2021-07-23
 - Select the Strike: $86
 - Premium you'll receive: $315.00
 - Cost Basis: $85.62 - $3.15 = $82.47
 

NKE
 Monday Open: $129.24
 Friday Close: $154.35
 5-day change: 19.42%

 Starting a New Wheel: Selling a Cash-Secured Put on NKE
 - NKE's Current Price: $154.35
 - Capital Needed: $15500.00
 - Sell at the Expiration Date: 2021-07-23
 - Select the Strike: $150
 - Premium you'll receive: $223.00
 - Cost Basis: $150.00 - $2.23 = $147.77

 Starting a New Wheel: Selling a Covered Call on NKE
 - NKE's Current Price: $154.35
 - Capital Needed: $15435.00
 - Sell at the Expiration Date: 2021-07-23
 - Select the Strike: $155
 - Premium you'll receive: $428.00
 

PINS
 Monday Open: $73.14
 Friday Close: $76.84
 5-day change: 5.05%

 Starting a New Wheel: Selling a Cash-Secured Put on PINS
 - PINS's Current Price: $76.84
 - Capital Needed: $7700.00
 - Sell at the Expiration Date: 2021-07-23
 - Select the Strike: $76
 - Premium you'll receive: $308.00
 - Cost Basis: $76.00 - $3.08 = $72.92

 Starting a New Wheel: Selling a Covered Call on PINS
 - PINS's Current Price: $76.84
 - Capital Needed: $7684.00
 - Sell at the Expiration Date: 2021-07-23
 - Select the Strike: $77
 - Premium you'll receive: $370.00
 - Cost Basis: $76.84 - $3.70 = $73.14
 

SBUX
 Monday Open: $110.00
 Friday Close: $113.04
 5-day change: 2.76%

 Starting a New Wheel: Selling a Cash-Secured Put on SBUX
 - SBUX's Current Price: $113.04
 - Capital Needed: $11400.00
 - Sell at the Expiration Date: 2021-07-23
 - Select the Strike: $113
 - Premium you'll receive: $205
 - Cost Basis: $113.00 - $2.05 = $110.95

 Starting a New Wheel: Selling a Covered Call on SBUX
 - SBUX's Current Price: $113.04
 - Capital Needed: $11304.00
 - Sell at the Expiration Date: 2021-07-23
 - Select the Strike: $114
 - Premium you'll receive: $264.00
 - Cost Basis: $113.04 - $2.64 = $110.40

NKE Earnings:

Whoa! Nike gave a blowout report this week and their shares rallied about 13% after the market close on Thursday! The company surpassed Wall Street revenue estimates by more than $1 billion! That's a lot of zeroes! 😮

Remember, Nike is the the world’s largest athletic footwear and apparel seller and they have done an amazing job with migrating their business digitally! They reported fiscal fourth-quarter net income of $1.51 billion, compared to a loss of $790 million in the year-ago period due to the pandemic.

 Revenue rose to $12.34 billion from $6.31 billion in the year-ago quarter, since physical stores were affected to the lock down. Analysts expected revenue of $11.03 billion.

CEO John Donahoe stated on the earnings call, “The structural tailwinds we’ve discussed before, including the return to sport and permanent shifts in consumer behavior toward digital and health and wellness continue to create energy for us."

Nike's largest growth drivers include our women’s business, apparel, Jordan and international.

Nike has been on the latest social media trend and the company says that they have been attracting new Gen Z customers with new TikTok and Snapchat campaigns, along with the new Jordan brand, Zion 1.

Nike members now total 300 million! The CEO said that this is a consumer funnel that drives engagement, average order value (AOV), and purchase frequency.

As of today, shares of Nike are up around 34% over the past year.

Here's a chart of NKE over the past 5 years:

Looks good to me! 😉

We are still bullish on NKE in the long-term and recommend this stock. This company is part of the S&P500 and DOW30, and also pays a quarterly dividend. You can consider adding more shares to your portfolio, either as long-term holds or as a Wheel trade. Or why not do a little both if you have multiple accounts, like a Roth IRA and cash account? Again, make sure you like the stock yourself and see if the stock fits your risk-tolerance.

If you want to (re)start a Wheel on NKE, you can either wait a couple of days or sell a CSP further OTM. There is a chance that because of the large gap up, the stock might want to fill in some of the gap and trend slightly downwards.

Join Our Discord 💬

Investing, trading, and building wealth was a lonely journey for me. This is why my team and I created a Discord group for you and the other members to shares ideas and support one another. You don't have to go through it alone as we're all here to help. 😉

Make sure to check it out on the bottom of your "Dashboard" and follow the instructions on how to sign up. Coming from a teacher's perspective, I believe it's important to engage in conversations with people who are also seeking to reach financial freedom.

Remember that we are a community of wealth builders at all different levels, so be positive, kind, and helpful to others, so we can help each other get to financial freedom much faster.

Level 1 FAQ 🙋‍♂️🙋‍♀️

Have questions? Before asking me and my team, feel free to check out our Level 1 FAQ. This FAQ is located on the Level 1 page. You might find what you're looking for. 😊

If you do have questions, make sure to ask them on our Dashboard, rather than asking us via email.

We also encourage you to watch all of the core video content and some of the past archived videos, read past Membership Positions, and take all the quizzes before sending us your questions.

Looking Forward

Looking at the trend of the markets, it looks like Wall Street is slowly overcoming their fears of their monetary uncertainty. We have been noticing more money being put into the markets and that companies that deliver outstanding numbers are getting their stock prices moved higher, contrary to what we've been seeing in the past couple of months.

If you've been investing and trading with us over the past year, you most likely have seen a significant rise in your portfolio.

Like what my team and I always remind you to do, make sure to not be hyper-focused on the short term. As long as you are investing in companies with rising revenues and a sustainable and solid business model, their share prices will grow over time.

Let's take a look at some of the stocks that we've recommended over the past year:

ROKU:

SQ:

EL:

AAPL:

COST:

SBUX:

MA:

PYPL:

MSFT:

Testimonies

As many of you already know, it was last year during this time that we started Call to Leap. We set our mission to help people become more conscious about their spending habits, create a positive, wealth mindset, and to build long-term wealth in the stock market. If you've been enjoying your membership here at Call to Leap, we would really appreciate you writing a review/testimony for us. In return for your time, we are offering a free month to your subscription.

Here are the details:

If we choose your testimony to put on our site, we will give you a free month to your subscription! 🎉

*If you've participated in writing your testimony before, you will not be able to qualify.

My team and I want to thank all of you for putting your faith and trust in us in guiding you on your journey to financial freedom. We get many emails and messages from you each week, letting us know how much you're learning and how you've been growing your wealth! These emails and messages mean the world to us as it encourages us to progress forward.

Thank you! We love you! Stay Amazing! 😀

-Steve and the Call to Leap Team

The following article is strictly the opinion of the author and is to not be considered financial/investment advice. Call to Leap LLC and the author of this article does not claim to be a registered financial advisor (RIA) or financial advisor. Please visit our terms of service and privacy policy before reading this article.