🔒 Membership Positions - January 17, 2021
- Call to Leap
- Jan 16, 2021
- 4 min read
Updated: May 27, 2021
Hey Members!
The market fell slightly this week. The S&P500, DOW30, and NASDAQ broke their four-week winning streaks, falling 1.5%, 0.9%, and 1.5%, respectively.
Here's an overall view of the markets:
Again, don't panic because you see red. This is normal stock market activity!
Here are some notable price movements in the stocks we're trading:
Advanced Micro Devices AMD
Monday Open: $94.03
Friday Close: $88.21
Microsoft MSFT
Monday Open: $218.47
Friday Close: $212.65
Apple AAPL
Monday Open: $129.19
Friday Close: $127.14
Nike NKE
Monday Open: $146.00
Friday Close: $140.72
Trade of the Week:
If your covered calls expired worthless, you can sell another call against your shares at the same strike you chose last month. If you were assigned the 100 shares from your cash-secured put, you can now convert your trade into a covered call by selling at the same strike you chose last month.
Like what we've been saying for the past couple of weeks, note that earnings reports are coming up for a lot of our favorite stocks. This means that implied volatility will be higher, which causes premiums to be higher too. If you are a beginner, you can wait until after earnings to see which companies do well to then start the Wheel. If you still want to start the Wheel anyway, we recommend you starting off with selling cash-secured puts around 1-2 strikes OTM. However, if you are more experienced and have been using the Wheel Strategy for some time, we recommend restarting by selling a covered call around 1-2 strikes OTM.
Here are some trade recommendations:
Starting a New Wheel: Selling a Cash-Secured Put on MSFT - MSFT's Current Price: $212.65 - Capital needed: $21,250.00 - Sell at the Expiration Date: 2021-02-12 - Select the Strike: $212.50 - Premium you'll receive: $670.00 - Cost basis: $212.50 - $6.70 = $205.80
Starting a New Wheel: Selling a Covered Call on MSFT - MSFT's Current Price: $212.65 - Capital needed: $21,265.00 - Sell at the Expiration Date: 2021-02-12 - Select the Strike: $215.00 - Premium you'll receive: $612.50 - Cost basis: $212.65 - $6.12 = $206.53
Starting a New Wheel: Selling a Cash-Secured Put on AAPL - AAPL's Current Price: $127.14 - Capital needed: $12,700.00 - Sell at the Expiration Date: 2021-02-12 - Select the Strike: $127.00 - Premium you'll receive: $595.00 - Cost basis: $127.00 - $5.95 = $121.05
Starting a New Wheel: Selling a Covered Call on AAPL - AAPL's Current Price: $127.14 - Capital needed: $12,714.00 - Sell at the Expiration Date: 2021-02-12 - Select the Strike: $128.00 - Premium you'll receive: $545.00 - Cost basis: $127.14 - $5.45 = $121.69
Starting a New Wheel: Selling a Cash-Secured Put on AMD - AMD's Current Price: $88.21 - Capital needed: $8,800.00 - Sell at the Expiration Date: 2021-02-12 - Select the Strike: $88.00 - Premium you'll receive: $542.50 - Cost basis: $88.00 - $5.42 = $82.58
Starting a New Wheel: Selling a Covered Call on AMD - AMD's Current Price: $88.21 - Capital needed: $8,821.00 - Sell at the Expiration Date: 2021-02-12 - Select the Strike: $88.50 - Premium you'll receive: $545.00 - Cost basis: $88.21 - $5.45 = $82.76
Starting a New Wheel: Selling a Cash-Secured Put on NKE - NKE's Current Price: $140.72 - Capital needed: $14,000.00 - Sell at the Expiration Date: 2021-02-12 - Select the Strike: $140.00 - Premium you'll receive: $360.00 - Cost basis: $140.00 - $3.60 = $136.40
Starting a New Wheel: Selling a Covered Call on NKE - NKE's Current Price: $140.72 - Capital needed: $14,072.00 - Sell at the Expiration Date: 2021-02-12 - Select the Strike: $141.00 - Premium you'll receive: $380.00 - Cost basis: $140.72 - $3.80 = $136.92
Earnings Dates 📅
Mark your calendars and put strap on your seatbelts! There will be some volatility in the coming weeks.
Advanced Micro Devices, Inc. | AMD - Jan. 26
Apple Inc. | AAPL - Jan. 27
PayPal Holdings, Inc. | PYPL - Jan. 27
Microsoft Corporation | MSFT - Jan. 27
Visa Inc. | V - Jan. 27
MasterCard Inc. | MA - Jan. 28
Home Depot, Inc. | HD - Feb. 23
Square, Inc. | SQ - Feb. 23
Remember that in this program, we like to follow earnings and only invest and trade in stocks that do well fundamentally.
Discord Launched! 💬
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.
AMD VS INTC 💻
Like what we mentioned in this week's video, we currently do not see INTC as a good investment since they broke off ties with Apple last summer. Even though there was news this week about INTC getting a new CEO and that there was some market share reallocation from AMD to INTC, we don't like to base our trading and investing decisions on news. Rather, we want to see hard numbers from companies to see if the revenues are there to justify our investments. We still believe that AMD is a solid company to participate in right now.
Stay calm, positive, and patient! Enjoy the rest of your weekend! 😎
- 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.
