Here’s where we stand with our Perpetual Income Portfolio Club positions heading into the weekend.
AAPL Dec Monthly (12/18) 121 Put
Apple (AAPL) jumped Tuesday after it was reported the company plans to produce up to 96 million iPhones in the first half of 2021. That would be an almost 30% increase over the first half of this year.
Shares haven’t looked back since, and our put is on track to expire worthless. We will sell another one next week.
Current Stock Price: $126.75
Action: Watch put expire worthless
AMAT Dec Monthly (12/18) 87.50 Put
Applied Materials (AMAT) spent the week consolidating in a narrow trading range. Shares appear to be having trouble pulling away from $87.50.
The stock is hovering right around the strike price of our put. If it closes below it, we will be assigned shares and sell a call next week. If it closes above it, our put will expire worthless and we will sell another one next week.
Current Stock Price: $87.35
Action: Watch put expire
CHWY Dec Monthly (12/18) 80 Put
Chewy (CHWY) exploded higher this week, gaining roughly 18%. This was due in part to positive analyst coverage. Two analysts raised their price targets for the stock and noted that Chewy is likely to capture market share in the new year and increase net sales per customer.
Our put is on track to expire worthless and we will sell another one next week.
Current Stock Price: $100.46
Action: Watch put expire worthless
TGT Dec Monthly (12/18) 172.50 Call
Target (TGT) continued to slide this week and is now trading just below its $170 to $175 range. Retail sales for November dropped a seasonally adjusted 1.1%, the biggest decline in seven months, and worse than Wall Street expected. Shoppers appear to be staying home more and spending less as coronavirus cases surge. However, I continue to see Target as a beneficiary of the pandemic and expect the company to capture more market share from other retailers.
Our call is on track to expire worthless, and we will sell another one next week. If the stock happens to close above $172.50, our shares will be called away and we will sell a put.
Current Stock Price: $169.31
Action: Watch call expire
Disclosure: I have positions or trade in and out of AAPL, AMAT, CHWY and TGT.