Hi friends,
This past week was...interesting.
For several companies, selling covered calls would have resulted in nice premiums while letting you hold your shares if you did things right. Here's where the market closed this past Friday (7/18/20 at close):
Dow Jones Industrial Average: 26,671.95 -62.75 (-.23%)
S&P 500: 3,224.73 +9.16 (+.28%)
Nasdaq: 10,503.19 +29.39 (+.28%)
Russell 2000: 1,473.32 +5.76 (+.39%)
Notable earnings in the upcoming week (7/13/20-7/17/20): 7/20/2020:
IBM
CDNS
HAL
ZION
7/21/2020:
KO
CMA
COF
ISRG
LMT
PCAR
PLD
PM
SCHW
SYF
TXN
UAL
WRB
7/22/2020:
MSFT
ALGN
APH
BIIB
BKR
CMG
CSX
DFS
DOV
EFX
TMO
7/23/2020:
DOW
INTC
TRV
AAL
7/24/2020:
AXP
VZ
Ahh, Microsoft. Let's run fundamentals for MSFT:
Last 4 earnings report: Beat all estimates
3-year EBITDA
2017: Improved from 2016
2018: Improved from 2017
2019: Improved from 2018
Technicals:
3-month: ~ +15.03%
1-year: ~ +49.89%
5-year: ~ +351.76%
Look at that 5 year-gain. Sometimes the most steady gains are the nicest; but that depends on your risk appetite. If you're curious about how covered calls could work in a situation like this, check out our level 1 courses.
Until next time!
- Call to Leap Team
The following article is strictly the opinion of the author and is to not be considered financial/investment advice. Call to Leap LLC and the author of this article does not claim to be a registered financial advisor (RIA) or financial advisor. Please visit our terms of service and privacy policy before reading this article.