Editor’s note: Michael is hosting a Perpetual Income Portfolio Club Live Trading Session on Monday, April 12, at 11 a.m. Eastern. If you have not already done so, register here.
Once you have registered, you will receive email reminders from our webinar provider, Zoom, prior to the session with a link to join.
Apple (AAPL) has finally begun to move up. I am recommending we spend a bit of cash to roll our call out two weeks and to a higher strike price to capture more potential appreciation.
If you are not currently in an AAPL position, please sit this week out. I will alert you when it’s time to put new money to work.
Note that I plan to swap out Corning (GLW) and Starbucks (SBUX) for two new stocks on Monday, which I will cover in detail in the Live Trading Session.
Current Stock Price: $131.24
- Buy to close the AAPL Apr Week Two (4/9) 125 Call for around $6.25
- Sell to open the AAPL Apr Week Four (4/23) 126 Call for around $6.05
- Set your initial debit limit at $0.20, but adjust as needed to roll today
And here’s where we stand with our other Perpetual Income Portfolio Club position heading into the weekend.
CHWY Apr Week Two (4/9) 84 Call
Chewy (CHWY) continued to trade in the $80-$85 range this week. Analysts have been increasing their earnings estimates for the pet retailer, which continues to capitalize on the surge in pet ownership spurred by the pandemic.
Our call is currently on track to expire worthless. If it does, we will sell another one on Monday. However, if the stock closes above $84, our shares will be called away and we will sell a put next week.
Current Stock Price: $82.55
Action: Watch call expire
Disclosure: I have positions or trade in and out of AAPL, CHWY, GLW and SBUX.