Rocky’s Weekly Stock Picks

Paypal is not a pick this week, but we do have exposure to it via call debit spread. Singular, yes.

Since this week is Labor Day Weekend, and the markets are closed Monday, let’s celebrate.

1. STPZ - This ETF from PIMCO is based on 1 to 5 year US TIPS. They say higher yields mean higher risk, but this is PIMCO, so there is no risk. Shares closed at $54.96. Really, just about any ETF based on government securities from a large company is going to be a safe buy. For $55, though, this is a more affordable option for those of us with limited funds.
   
   That’s not to say we suggest buying cheap shares, but a 9% return on $55 vs a 2% return on $115 is pretty much a no-brainer.
   

2. BBIG - ATM covered calls are looking at an 18% return on the week. This was also the case last week (maybe it was like 16%, whatever). At $7.68 a share, 100 of these should be within reach.

   If we went with the :LEAP, we could buy the 1/20/2023 $3.50 call at a $4.60 premium, Then sell the 9/10/2021 $7.5 call for a $1.35 premium. Assuming the price stays the same, we make $75 Upon expiration. Or we can sell the $8 call for $1.23 premium. At expiration, we now have the same LEAP but have only spent $3.37.

   If we use our Upgrade personal line of credit, we can do this for 5 weeks (which is before your first payment is due!) then repay the loan.

   We do not recommend buying the shares outright.
   

3. IRNT - We often make purchase decisions based entirely on company name. In this case, we advise against buying shares of IronNet. What we do recommend, however, is to sell cash secured puts, If we have our orders in for Tuesday morning, we should be able to capitalize on the spike in volatility. A $20 put has a $7.30 premium. That’s like 35%. Options trade monthly.

   
   Our projection for price by expiration is $16.
   

4. SNMP - At $1.17 a share, we’re going to gamble on this energy company, and we’ll set a GTC sell order at $10, renewing every 90 days. We expect to hold this for close to 2 years.
   

5. GNTX - Gentex makes commercial smoker alarms and signaling devices. I assume that means fire alarms and like, whatever service it is that the fire department is already on their way by the time you call 911.

   At $31.21 a share, we could see a move in either direction and feel pretty much the same.

Was this the celebration you had anticipated? We certainly had a good time!