The start of a new year is always a good time to take a breath and assess your portfolio. After considering ours, I have decided to move on from two of our current names and replace them with new stocks next week.
There’s nothing wrong with these companies — their stories have not changed. But I see greater potential elsewhere, along with the opportunity to diversify our core holdings.
Please keep an eye out for next week’s Perpetual Income Portfolio Club alert, which will introduce the new stocks.
Here’s where we stand with our current positions heading into the weekend.
AAPL Jan Monthly (1/15) 130 Put
We rolled our Apple (AAPL) put on Thursday following a jump in the stock to generate more income. Shares continue to move higher today. Our put does not expire for another week, so we are simply watching and waiting for now.
Current Stock Price: $131
Action: No action is needed at this time
AMAT Jan Week Two (1/8) 87 Call
Our Applied Materials (AMAT) call is deep in the money. I am recommending we allow our shares to be called away rather than chase the stock higher.
AMAT has rallied 160% from its mid-March lows in an astounding display of strength. I remain bullish on the company but it’s time to move on from the stock in this service. I believe AMAT’s upward momentum will slow, and I see greater potential for upside and premium in another name that I will introduce next week.
Current Stock Price: $95.37
Action: Allow shares to be called away
CHWY Jan Week Two (1/8) 100 Put
Chewy (CHWY) briefly traded above our 100 strike today but has since pulled back. I am recommending we accept shares and will sell a call against them next week.
Current Stock Price: $96.94
Action: Accept shares
TGT Jan Week Two (1/8) 175 Call
Target (TGT) has been a big beneficiary of the coronavirus pandemic, delivering excellent profits and gaining market share. Traders have taken note and the stock has more than doubled off its mid-March lows.
There’s plenty to love about TGT, but as I said above, I want to diversify the PIPC portfolio. I have decided to stick with the more volatile CHWY as our retail stock and will replace TGT with a new name next week.
Current Stock Price: $192.10
Action: Allow shares to be called away
Disclosure: I have positions or trade in and out of AAPL, AMAT, CHWY and TGT.