Here’s where we stand with our Perpetual Income Portfolio Club positions heading into the weekend.
AAPL Jan Monthly (1/15) 130 Put
Apple (AAPL) traded slightly lower this week. We did get positive news that Taiwan Semiconductor Manufacturing (TSM) posted record fourth-quarter earnings, which management said was due in part to the launch of the iPhone 12. We also learned Apple is planning the first redesign of its iMac desktop computer since 2012.
We are currently on track to be assigned shares. If we are, we will sell a call against them next week. However, if AAPL closes above $130, our put will expire worthless and we will sell another one next week.
Current Stock Price: $128.70
Action: Watch put expire
CHWY Jan Week Five (1/29) 108 Call
Chewy (CHWY) exploded higher this week. On Wednesday, shares shot up 8% after a Credit Suisse analyst raised their price target for the stock to $121 per share. Then, on Thursday, CHWY added another 2% as pet supply retailer Petco Health and Wellness (WOOF) made a strong market debut.
We rolled our call to avoid having shares called away, bringing in more income and giving us the opportunity to capture more potential appreciation. While the stock is selling off today, it remains above our new call’s strike.
Current Stock Price: $110.06
Action: No action is needed at this time
GLW Jan Monthly (1/15) 37.50 Put
Last night, President-elect Joe Biden revealed his $1.9 trillion pandemic relief plan that included $20 billion earmarked for a national vaccine program. He also pledged to have 100 million doses of the vaccine administered in his first 100 days as president. While some are warning that target may be optimistic given the rocky rollout thus far, one thing we know is that more vaccine doses will require more of Corning’s (GLW) Valor glass vials.
Out put is currently on track to expire worthless. If it does, we will sell another one next week. However, if GLW closes below $37.50, we will accept shares and sell a call next week.
Current Stock Price: $37.87
Action: Watch put expire
SBUX Jan Monthly (1/15) 103 Put
Starbucks (SBUX) traded lower this week with the broader market. Initial unemployment claims reached their highest level since August, and December retail sales were worse than expected. Reports like this highlight the coronavirus pandemic’s continued effect on the economy, and they appear to be weighing on stocks. However, Starbucks’ sales trends are improving, especially in China. (Speaking of China, we learned this week that Chinese President Xi Jinping has called on former Starbucks CEO Howard Schultz to help improve U.S.-China ties.)
We are currently on track to be assigned shares. If we are, we will sell a call against them next week. However, if SBUX closes above $103, our put will expire worthless and we will sell another one next week.
Current Stock Price: $102.47
Action: Watch put expire
Disclosure: I have positions or trade in and out of AAPL, CHWY, GLW and SBUX.