Editor’s note: Michael is hosting a Perpetual Income Portfolio Club Live Trading Session on Monday, Feb. 1, 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.
The market has been on a wild ride this week with volatility soaring as retail investors poured into GameStop (GME) and other heavily shorted names. We will discuss this and its potential impact on stocks going forward in Monday’s live session.
A number of our stocks reported earnings this week, and I will cover those reports in more detail on Monday as well.
Here’s where we stand with our Perpetual Income Portfolio Club positions heading into the weekend.
AAPL Jan Week Five (1/29) 132 Call
Apple (AAPL) delivered an excellent earnings report on Wednesday. The company generated more than $100 billion in quarterly sales and saw double-digit percentage increases in sales for each of its product categories.
Shares fell despite the blowout report and our call is currently on track to expire worthless. If that happens, we will sell another call on Monday. If, however, the stock closes above $132, our shares will be called away and we will sell a put.
Current Stock Price: $131.05
Action: Watch call expire
CHWY Jan Week Five (1/29) 108 Call
Chewy’s (CHWY) big swings this week made it too difficult for us to roll to a different strike. Our call is on track to expire worthless and we will sell another one on Monday.
Current Stock Price: $100.61
Action: Watch call expire worthless
GLW Jan Week Five (1/29) 40 Put
Corning (GLW) fell this week despite the company reporting better-than-expected fourth-quarter results and raising its core sales outlook for the first quarter. We are on track to be assigned shares and will sell a call on Monday.
Current Stock Price: $35.69
Action: Accept shares
SBUX Jan Week Five (1/29) 104 Call
Starbucks (SBUX) also sold off this week after reporting quarterly results. While earnings beat estimates, revenue fell short and the company said same-store sales dropped 5% due to heightened coronavirus restrictions.
Our call is on track to expire worthless and we will sell another one on Monday.
Current Stock Price: $96.35
Action: Watch call expire worthless
Disclosure: I have positions or trade in and out of AAPL, GLW, CHWY and SBUX.