🔒 Membership Positions

Hi Everyone!

Put on your party hats! It looks like SPY made another ATH with QQQ climbing back to its April highs again!

Here's a snapshot of the overall markets:

Here's SPY:

Here's QQQ:

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.

NKE: Be more cautious with trading NKE right now since their earnings are coming up soon. IV is high, meaning that there might be some wild price swings when they deliver their quarterly reports. For me, I think NKE has pulled back for quite some time and is ready to rally back up. There may be a chance that their report serve as a catalyst to spark a rally in the stock.

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

MSFT:

Monday Open:$249.98

Friday Close:$257.89

Change: 3.16%

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

- MSFT's Current Price: $257.89

- Capital needed: $25,750.00

- Sell at the Expiration Date: 2021-07-09

- Select the Strike: $257.50

- Premium you'll receive: $430.00

- Cost basis: $257.50 - $4.30 = $253.20

Starting a New Wheel: Selling a Covered Call on MSFT

- MSFT's Current Price: $257.89

- Capital needed: $25,789.00

- Sell at the Expiration Date: 2021-07-09

- Select the Strike: $260.00

- Premium you'll receive: $345.00

- Cost basis: $257.89 - $3.45 = $254.44

AMD:

Monday Open:$81.40

Friday Close:$81.31

Change: -0.11%

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

- AMD's Current Price: $81.31

- Capital needed: $8,100.00

- Sell at the Expiration Date: 2021-07-09

- Select the Strike: $81.00

- Premium you'll receive: $236.50

- Cost basis: $81.00 - $2.37 = $78.64

Starting a New Wheel: Selling a Covered Call on AMD

- AMD's Current Price: $81.31

- Capital needed: $8,131.00

- Sell at the Expiration Date: 2021-07-09

- Select the Strike: $81.50

- Premium you'll receive: $245.50

- Cost basis: $81.31 - $2.46 = $78.86

AAPL:

Monday Open:$126.17

Friday Close:$127.35

Change: 0.94%

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

- AAPL's Current Price: $127.35

- Capital needed: $12,700.00

- Sell at the Expiration Date: 2021-07-09

- Select the Strike: $127.00

- Premium you'll receive: $243.00

- Cost basis: $127.00 - $2.43 = $124.57

Starting a New Wheel: Selling a Covered Call on AAPL

- AAPL's Current Price: $127.35

- Capital needed: $12,735.00

- Sell at the Expiration Date: 2021-07-09

- Select the Strike: $128.00

- Premium you'll receive: $231.50

- Cost basis: $127.35 - $2.31 = $125.03

NKE:

Monday Open:$134.00

Friday Close:$131.94

Change: -1.54%

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

- NKE's Current Price: $131.94

- Capital needed: $13,100.00

- Sell at the Expiration Date: 2021-07-09

- Select the Strike: $131.00

- Premium you'll receive: $367.50

- Cost basis: $131.00 - $3.67 = $127.33

Starting a New Wheel: Selling a Covered Call on NKE

- NKE's Current Price: $131.94

- Capital needed: $13,194.00

- Sell at the Expiration Date: 2021-07-09

- Select the Strike: $132.00

- Premium you'll receive: $415.00

- Cost basis: $131.94 - $4.15 = $127.79

PINS:

Monday Open:$62.88

Friday Close:$68.18

Change: 8.43%

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

- PINS's Current Price: $68.18

- Capital needed: $6,800.00

- Sell at the Expiration Date: 2021-07-09

- Select the Strike: $68.00

- Premium you'll receive: $294.00

- Cost basis: $68.00 - $2.94 = $65.06

Starting a New Wheel: Selling a Covered Call on PINS

- PINS's Current Price: $68.18

- Capital needed: $6,818.00

- Sell at the Expiration Date: 2021-07-09

- Select the Strike: $68.50

- Premium you'll receive: $282.50

- Cost basis: $68.18 - $2.83 = $65.36

What's Steve Doing With His Premiums?

From all the Wheel premiums and BCS and LEAPS profits, I'm reinvesting my capital back into beefing up my long-term holds.

Here are some companies I'm investing right now that seem to be favored by Wall Street:

Microsoft: I love the cloud revenue and subscription business this company has. I'm trading this stock in my cash account, but have shares as long-term holds in my retirement accounts. This stock is one big reason why the major index is increasing as you can see it mirroring the price movements of the S&P500. Remember, this company is part of the S&P500 and DOW30, pays a dividend, and I consider this company one of the Steady Eddies in the markets as it has been resilient over the past several years.

Facebook: I simply love the ad revenue they bring in each year. This one is only part of the S&P500 and does not pay a dividend. It is a little volatile at times, but I am still adding more shares to my long-term holds.

Visa: As we continue to progress towards a cashless society, I think Visa is still a great long-term hold. It's part of the S&P500 and DOW30 and pays a dividend. Like Microsoft, this stock has been resilient over the past several years.

Google: This is another great ad and subscription business. It's a little on the pricey side, but you can consider purchasing some fractional shares.

SPY: This is another great investment as this ETF encompasses the top 500 "honor roll" companies in the US. The long-term trend is still upward and I can see a lot of stocks climbing higher from now until the end of the 2021 year.

QQQ: And lastly, here is my favorite tech-heavy ETF.

Conclusion: I know that some of you may be looking at these stocks and think, "The prices are so expensive!" Some of you might start to consider purchasing cheaper stocks just because you think you can get more shares. Remember that when investing, we don't like to be hyper-focused on price, but rather on the value the company brings. Focusing only on the price of the stock is a middle-class mindset. Focusing on on the value of the stock and it's future is a millionaire mindset.

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.

Stay disciplined and patient! Great things are coming our way! 😀

-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.