Rocky’s Weekly Stock Picks
New year, new opportunities. We closed out last week pretty conservatively - how’d you end 2021? This week’s picks are generated with the presumption of having already taken advantage of the general downturn in the market. Bringing down our cost average on stocks we’re selling calls on is always a winning game-plan.
BBBY - $14.70/share, with covered calls returning 5% and 10% for the week ending January 7. Magnificent. If we can’t afford the LEAP, we might consider a calendar call. This is a stock that we don’t mind holding for a while, but we also are totally cool with selling at a profit.
CKPT - $3.10/share. This is a little more reasonably priced for a random ITM covered call. At the $2.50 strike, we would realize a ~16% profit of $35. That is, if we get the prices as they currently show. We like to have our orders queued up, but there’s no guarantee we get it.
A cursory check shows that this therapeutics company has been listed for about 4 years, and a relatively stable price. Maybe you care more, we kind of don’t. We’re anticipating overall upward momentum overall for pharma in the short-term.T -$24.60, ex-div on Friday. $0.52/quarter brings us to an 8.38% annualized return. Nice. AT&T (or is it just ATT these days?) also trades options. Weekly. They are technically an evil behemoth that controls a massive swath of infrastructure, but… they also control a massive swath of infrastructure. T shares will be around paying high dividends for years to come.
CAFRX - This is a mutual fund, so that may or may not be accessible for some of us. It continues to perform exactly as expected, and we expect to see a significant boom period for Africa. as many infrastructure projects are being completed. Provided we’ve been invested at least 6 months, we’ll be looking to exit.
Chinese-built infrastructure in Africa paid for with 99-year leases…what could possibly go wrong in that scenario?FATBP - $18.48 , 8.25% cumulative Preferred Stock . ex-div on Friday.
