Editor’s note: Michael is hosting a Perpetual Income Portfolio Club Live Trading Session on Monday, Dec. 7, 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.
Below I discuss where we stand with our Perpetual Income Portfolio Club positions heading into the weekend.
I hope you can join me for Monday’s Live Trading Session, where I will be introducing the newest stock on our Perpetual Income Portfolio Club roster. Of course, for anyone who cannot attend, we will be recording the session and posting it to the member site.
AMAT Dec Week One (12/4) 83.50 Put
It was another good week for Applied Materials (AMAT), which gained more than 6.5% and hit a new all-time high today. In addition to broader-market strength on optimism about COVID-19 vaccines and a government stimulus package, this semiconductor stock is benefiting from a chip supercycle. Reduced transistor sizes and the need for 5G capability is spurring demand for new-and-improved chips.
Our put is on track to expire worthless, and we will sell another one next week.
Current Stock Price: $88.07
Action: Watch put expire worthless
CHWY Dec Week One (12/4) 70 Put
Chewy (CHWY) was even more volatile than usual this week as the pandemic stock bounced around based on the prevailing coronavirus headlines of the day. The company is scheduled to report earnings on Dec. 8. It’s anyone’s guess which way the stock will go and by how much. So, we will wait until after the announcement to enter a new trade.
Our put is on track to expire worthless. We will sell another put after the earnings dust settles.
Current Stock Price: $74.75
Action: Watch put expire worthless
TGT Dec Week One (12/4) 175 Put
Target (TGT) made a new record high this week before turning lower. We likely have an arduous winter ahead of us in terms of coronavirus cases and tighter restrictions. I expect this retailer to continue capturing market share and making same-store and e-commerce sales gains as it has since the start of the pandemic.
We are currently on track to be assigned shares. If that happens, we will sell a call next week. If, however, TGT closes above our put’s strike, we will sell another put next week.
Current Stock Price: $173.61
Action: Watch put expire
Disclosure: I have positions or trade in and out of AMAT, CHWY and TGT.