Here’s where we stand with our Perpetual Income Portfolio Club positions heading into the weekend.
AMAT Jul Week Four (7/24) 60 Put
Applied Materials (AMAT) is holding above $60 despite a slight dip in the sector due to Intel’s downward move. The company is in good shape but Intel’s announcement it was delaying the rollout of 7 nanometer chip technology is affirmation that we are in the early stages of a chip cycle that will power AMAT’s business for years, not quarters. Let’s watch this put expire worthless and sell another one next week.
Current Stock Price: $60.94
Action: Watch put expire worthless
Chewy (CHWY) is bouncing around support at $47. The company is in terrific shape as pet ownership and the sale of pet related products is booming. The stock is now in a tight trading range of $47-$52.50 and the option chains have gigantic premiums, a perfect situation for collecting cash. If we are called out, we will sell a put option on Monday. If the stock closes below $47, we will sell another call.
Current Stock Price: $46
Action: Watch call expire worthless
Gilead Sciences (GILD) continues to trade in an ever-tightening range of $75-$77.50. The company’s earnings come out next week and we will maintain our position through the announcement. We will sell a way out of the money call next week to protect potential appreciation.
Current Stock Price: $74.28
Action: Watch call expire worthless
Target (TGT) may be finding new support at $120. This could set up another bounce in the stock before and going into earnings on Aug. 19. We are on track to be called out with a $1 profit from where we were assigned the stock. We will sell a put next week.
Current Stock Price: $125.27
Action: Allow shares to be called away
Disclosure: I have positions or trade in and out of AMAT, CHWY, GILD and TGT.