Rocky’s Weekly Stock Picks

This week we’re going ultra conservative. But first, a public service announcement to any of our followers that regularly use Robinhood to trade options.

Always close your position prior to expiration! Despite the ability to trade multi-leg strategies, you can still be caught off guard by assignment. For example, say you wrote an OTM call on shares you own. Then say later you open an ITM credit spread. Guess what happens when that short leg gets assigned?

We aren’t going to advise one on what to do if you’re suddenly on the hook for a month’s rent, but we will strongly suggest that ALWAYS CLOSE POSITIONS PRIOR TO EXPIRATION.

1. NAK - One of our favorites from the start, we were expecting upward momentum by this time. Despite that not appearing to be happening, we’re still happy to continue getting our reliable couple of percent each month.

2. ORC - We love our REITs, especially Orchid Island Capital. The monthly options are kind of pointless, since the price stays pretty flat and the strikes are $2.50 apart. However, the monthly dividends are nice, with a healthy 15% annualized return.
   
   At $5 a share, one would do well to proceed with caution. Our primary concern being that 15% is quite high. We intend to hold shares indefinitely, so long as payments continue. Thus, a drop in share price isn’t particularly worrisome…for us.
   

3. ACVF - It doesn’t get any more conservative than the American Conservative Values Fund. The dividend…exists. Which is a nice bonus, as we were already buying into this ETF. At present the price hovers above $33/share.
   

4. DX, GOOD, LTC - $18/$22/$34 ~ , 8.74%/6.9%/6.6% annualized, respectively. These all go ex-div this week, and are part of our REIT basket. We recommend them all equally, all the time. GOOD is obviously the best, because of the name.
   

5. GOGL - This stock recently saw quite a surge in price, and is now paying a 20% dividend. Shares are $9.64. We missed this quarter, but that’s quite alright. Options trade monthly and right now you can get 5% on an ATM call.
   
   We actually anticipate that this move in price will last forever. The dividend probably won’t.

   They ship awesome stuff like coal. ores, grains, and fertilizers. Basically we’re looking at this as a long-term hold that we’re buying at a discount.