Here’s where we stand with our Perpetual Income Portfolio Club positions heading into the weekend.
AAPL May Week One (5/7) 128 Call
Apple (AAPL) announced new products at an event this week, including a redesigned iMac, the next iPad Pro and location-tracking AirTags. Company execs also fielded questions at a Senate antitrust hearing on app stores.
The stock is flat for the week and remains well above the strike price of the call we sold. Our call does not expire for another two weeks, and the company is expected to report earnings on Wednesday. Currently, the plan is to hold through that announcement.
Current Stock Price: $134.34
Action: No action is needed at this time
CHWY Apr Week Four (4/23) 77 Put
Chewy (CHWY) remains in a wide trading range between $75 and $85, but the company is firing on all cylinders. It’s dominating the online pet retail market and looking to expand into the lucrative health care and services market in coming years.
Our put is on track to expire worthless, and we will sell another one next week.
Current Stock Price: $79.30
Action: Watch put expire worthless
GM Apr Week Four (4/23) 57 Call
General Motors (GM) sold off early in the week following news that a shortage of semiconductor chips is forcing production cuts at GM and other automakers. But the stock has regained most of those losses and is currently trading back above our call strike.
If GM closes above $57, our shares will be called away and we will sell a put next week. However, if it closes below that level, our call will expire worthless and we will sell another one soon.
Current Stock Price: $57.37
Action: Watch call expire
TWTR Apr Week Four (4/23) 66 Put
Twitter (TWTR) sold off this week but is bouncing off the $65 level. The company is expected to report earnings next week, and we may decide to go into the announcement without an option position to avoid the heightened risk.
The stock is currently trading just below our put’s strike. If it closes below $66, we will be assigned shares. If, however, it closes above that level, our put will expire worthless.
Current Stock Price: $65.86
Action: Watch put expire
Disclosure: I have positions or trade in and out of AAPL, CHWY, GM and TWTR.