Rocky’s Weekly Stock Picks
This week’s focus is going to be aggressively writing Poor Man’s Covered Calls, with the actual poor man in mind. How wonderful it would be if we could go all in on RIOT and capture that sweet, sweet volatility. And it has worked in the past. But getting lucky isn’t a wise fallback plan.
And how nice would it be, if we could just buy $80,000 worth of ACB and get that easymode paycheck.
Please never do that. If you’re ever in a position to take on an $80,000 position…don’t, for the love of Christ, go all in on ACB (or any weed stock for that matter).
SNDL - You could go with a LEAP on this one for $0.35 or $0.45 at a $0.50 strike, then sell the weekly $1 strike call for an easy $2 that will pay for itself by expiration. Personally I’m probably buying the July or October 2021 expiration, but on the fence. That increases our % return, and expect to be able to easily offload the bought call, if it doesn’t get exercised. I’ll probably try for $0.20 on the Buy at market open, and one or two more just at the ask.
SEEL - Options are monthly and only go out to Nov of this year, but we find a slim chance at a 25% return! I’m not sure if you can queue a buy-write on Robinhood, so you’ll just have to be up on time (a good habit to have, that will help turn the tide of being poor). Buy the $7.5 Nov 19 call at $1.30, and write the May 21 for $7.50 at $0.30. The odds of getting exercised are virtually non-existent, and with your first premium income your risk is about $70. When you write the Jun call, depending on where the price is at (probably close to where it’s at now) you could then start writing at $10 strike, and still end up +$10 come November.
Or just buy the $5 Nov call and write May at $7.50. You’d still end up with $210, but your risk is -80, meaning you gain $80 if it gets exercised (as opposed to losing $80). Actually that’s a way better idea, since you’d have to collateralize the same amount either way. Poor people can’t write naked calls.
BNGO - I honestly expect to see this company be more important a decade from now. For the time being though, it’s just another penny stock….with high IV! Same basic deal as SEEL, buying a Nov 19 Call at $3. Writing the monthly at $6. Unlike SEEL, you can utilize LEAPS. The Jan 2022 Call, is only $11 more than the November 2021 Call. 10% monthly ain’t bad.
UAVS - Nov 19 $2.5 strike for $2.68,, sell May $5 strike at $0.33 . >10% a month, alright alright. But let’s see if we can find a weekly option that isn’t RIOT (btw I wrote calls on RIOT, too).
UVXY - Unless I’m mistaken, we can safely predict the price of this stock to steadily decline. Also, options trade weekly. If we buy the Sept 17th $2 Call at a $2.45 premium, we can write calls at $4.5 for $0.25 premium. 10% weekly, there we go.
Even if you don’t get lucky at market open, as long as you play it safe, you can try again next week. Or, sell your call ITM to more or less guarantee it gets taken off your hands. This requires some math on your part, and some measure of preparedness for when your written call gets exercised.
But you didn’t come here for amateur hour. You just wanted the not professional (wink wink) picks. To that point, why are you still reading? Looking for an affiliate link? Not gonna find it in the Weekly picks. Try Click! for that nonsense.
