Rocky’s Weekly Stock Picks

This week’s picks are coming early, and the markets are closed on Monday. This week we realized some losses, which could have been avoided if we’d taken our own advice! Odds are, you veered from it, as well. That’s fine, we’re amateurs here, it’s what we’re doing.

Hopefully, if you did unfortunately join us in realized loss, you had taken steps to mitigate your risks.

1. BBIG - $4.21/share , Covered call or LEAP. We’re not necessarily banking on this stock hitting $6 or even $7 before dropping off sharply. For this week, though, at open on Tuesday we could get ourselves into an 8% return for the week or more.
   
   We explicitly suggest not holding this stock for any other purpose other than to collateralize it.
   

2. RIOT - $20.68/share. Now is a great time to buy. This is about as low as RIOT goes. There’s reason, as well, to expect some volatility in the USD itself. That would be good for BitCoin - and therefore good for Riot Blockchain.
   
   An oddly specific scenario to consider - You own 100 shares of RIOT, and open a spread of some sort that gets exercised, and you take 100 shares, then immediately sell 100 shares. Depending on which brokerage you’re using. you may have little to no control over which shares are sold. You could end up losing 15% on capital gains.
   

3. SUNS - $14.77/share, 8% annualized return, paid monthly. What more could you want? How about monthly options? Seems someone sold a $17.50 strike call for $0.35, for February. Nice.
   
   There isn’t much volatility, and the price stays relatively strong.
   

4. YGYIP - $3.90/share, wow! That’s not a terribly great sign, but they are preferred shares, 9.75% cumulative perpetual. Redeemable at face value ($25). Yes, please.

   Apparently Columbine Capital Services upgraded Youngevity to 2 from 3. This might be worth looking into. I assume this is similar to, or is, a credit lending company. Or that 2 is reflective of creditworthiness. It doesn’t really matter, it’s an ugprade.
   

5. HMLPA - Another preferred stock, $22. Pays 8.75% (on face value (that means it’s higher than 8.75%)) quarterly. Cumulative, but it could get called in October of 2022…at face value. It’s important that we double-check, because the call price could be lower than the current price or the face value.