Membership Positions - December 20, 2020

Hey Investors and Traders!

It looks like we had a pretty good week in the overall market.

Here's a snapshot of our winners and losers. It looks like tech, consumer cyclicals, and most financials had a nice bump up, while energy had a slump.

Here are some notable price movements in the stocks we're trading:

Advanced Micro Devices AMD

Monday Open: $92.21
Friday Close: $95.92

Microsoft MSFT

Monday Open: $213.10
Friday Close: $218.59

Apple AAPL

Monday Open: $122.60
Friday Close: $126.66

Trade of the Week:

Nice! Here are the trades that we posted on our Membership Positions on November 22. It looks like the majority of us had our MSFT, AMD, and AAPL cash-secured puts expire worthless, meaning that we made around $294 to $572.50 per contract last month.

Like what we previously mentioned, MSFT and APPL are still trading sideways, which means that we recommend selling CSPs NTM when opening our Wheel positions again. On the other hand, AMD has been moving higher, so we recommend starting another Wheel on AMD with a covered call trade, by buying 100 shares and selling a call 1-3 strikes OTM. This way, if you're called away on expiration, you can collect some additional capital gains.

Also, we are going to recommend the Wheel Strategy on NKE, so we have more variety in our Wheels.

Below are some Wheel Strategy recommendations. Feel free to choose how you want to enter your Wheel on Monday based on your personal risk-tolerance.

Starting a New Wheel: Selling a Cash-Secured Put on MSFT

- MSFT's Current Price: $218.59

- Capital needed: $21,500.00

- Sell at the Expiration Date: 2021-01-15

- Select the Strike: $215.00

- Premium you'll receive: $510.00

- Cost basis: $215.00 - $5.10 = $209.90

Starting a New Wheel: Selling a Covered Call on AMD

- AMD's Current Price: $95.92

- Capital needed: $9,592.00

- Sell at the Expiration Date: 2021-01-15

- Select the Strike: $97.50

- Premium you'll receive: $452.50

- Cost basis: $95.92 - $4.53 = $91.39

Starting a New Wheel: Selling a Cash-Secured Put on AAPL

- AAPL's Current Price: $126.66

- Capital needed: $12,500.00

- Sell at the Expiration Date: 2021-01-15

- Select the Strike: $125.00

- Premium you'll receive: $392.50

- Cost basis: $125.00 - $3.92 = $121.08

Starting a New Wheel: Selling a Cash-Secured Put on NKE

- NKE's Current Price: $137.28

- Capital needed: $13,500.00

- Sell at the Expiration Date: 2021-01-15

- Select the Strike: $135.00

- Premium you'll receive: $465.00

- Cost basis: $135.00 - $4.65 = $130.35

If you're brand new to this and just starting out your Wheel, you might want to be a little bit more conservative and sell 1-2 strikes OTM CSP, just in case the stocks drop.

Nike Just Did It Again!

In their earnings announcement this past Friday, Nike NKE solidly beat analyst expectations! The swoosh-logo company Q2 revenue came in at $11.2 billion vs. $10.55 billion expected and $10.33 billion year over year. Yeah, that's a lot of money.

Digital sales increased by 84%, representing the third straight quarter of roughly 80% growth, and Greater China led all regions with revenue growth of 24%.

Nike CEO John Donahoe said on Friday's earnings call, "Digital is now woven into everything we do as a company. It’s how we operate and prioritize, from how we engage with members, to how we operate our supply chain, to how we serve consumers in the marketplace."

Like what we've been saying before, our thesis on our world shifting towards digital platforms and purchases is inevitable and it's wise to see which companies are taking advantage of these technological shifts if we want to become great investors.

Questions?

As a friendly reminder, please remember to ask us questions within our website platform, such as what you see on the screenshot below:

Some of you may ask us questions through Instagram DMs, YouTube comments, TikTok, Twitter, etc., but we mainly prioritize answering Call to Leap Members' questions through our site.

Discord Launched!

Like what we mentioned in our Ask Steve video this week, we launched our Discord! Make sure to check it out on the bottom of your "Dashboard" and follow the instructions on how to sign up.

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.

The Season of Giving

If you've been with us for a while and trading the Wheel Strategy, we know that many of you have made anywhere from $300-$20,000, depending on what your portfolio size may be. We want to let you know that we are extremely proud of you for deciding to take the first step in building your wealth and shifting your mindset into a growth and abundant mindset.

As you all know, our world has been deeply affected by with all that's been going on. Jobs have been lost and many families are struggling. If you made money these past couple of months by using our Call to Leap strategies, we encourage you to do something positive and give a little to those in need. As cheesy as it may sound, the world is in need for a little bit of love and we know that these little acts of kindness can totally change a family's holiday season.

Merry Christmas and happy holidays to you and your family! See you next week! 🎅

- 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.