Membership Positions - July 19, 2020
- Call to Leap
- Jul 19, 2020
- 2 min read
Updated: Jan 16, 2021
Hi Investors and Traders!
Hmm, we had a bit of a mixed week. The S&P 500 closed up +0.29% on the week, and the DOW30 closed at -0.23% for the week.
Trading Thoughts
MSFT had a close on Monday of $207.07 and dropped to yesterday's close of $202.88. Calm down Karens, this is normal price fluctuation of the stock market. Besides, we made money on this stock anyway since selling covered calls is a great strategy for neutral moving stocks. We hope that you sold covered calls around one month out for the extra extrinsic value. We also hope that you sold an ITM call for more downside protection.
AMD had a close on Monday of $53.59 and rose up to yesterday's close of $55.04. Before we pop any champagne bottles, remember that anything can happen from now until expiration. Be patient and enjoy the ride.
Earnings
I know we said this last week, and we'll say it again: Earnings season is coming up! This means that there will be a little bit more volatility, or big swings in price, over the next couple of weeks. If you are new to the stock market, don't freak out. If you are a veteran, you've seen this movie before.
Here are some earnings dates to be mindful of:
MSFT - Mon, July 27
AMD - Tue, July 28
V - Tue, July 28
PYPL - Wed, July 29
AAPL - Thu, July 30
MA - Thu, July 30
SQ - Wed, August 5
COST - Thu, August 27
If you want to check earnings dates for other companies, check out Earnings Whisper.
If you want to start a position in a new stock or add to your current position, you can wait after earnings to see the company's report card. It may be safer and wiser to see how COVID-19 affected their top-line revenue and guidance. You also want to see market sentiment and how Smart Money react to these earnings reports.
Words of Wisdom
Like what we mentioned last week, make sure you have the majority of your investments in steady, dividend-paying stocks. This will cushion your account in case there is a major pullback or correction. It seems that the markets have risen quite a bit since the March crash and we might be due for pullback or correction soon. Again, this is nothing to fear and just a normal event that happens in the stock market. Our goal is to not focus on the short-term movements, but the long-term upward trend.
Lastly, remember to watch last week's Q&A and investing video, and send us your questions on the Level I Course page. We always look forward to helping you in any way we can with trading and investing.
Stay disciplined, have an open and positive mindset, and we’ll see you next week!
-Call to Leap Team
