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Rocky’s Weekly Stock Picks

This week we have a four-day week, on account of President’s Day. We have a lot of price drops/falls we could capitalize on. We won on BTCM last week with ITM covered calls, so we might explore that further. HAS is a good one under $100 for a safety play with a reasonable dividend. Speaking of which, let’s begin.

  1. SMG - $137.49 , a dividend of $0.66 each quarter for an annualized return of 1.8%. It was either this, or JNJ, but we pass on this a lot. We also very much like fertilizers. We also like when scarcity meets fertilizers. Ex-div 2/23.

  2. PBFX $14.16, with quarterly dividend of $0.30. This is on par with Prospect Capital (PSEC), around eight and a half percent annual, though PSEC has a lower share price and distributes monthly. Ex-div 2/23,

  3. CRT - $14.60, monthly distributions, annualized to 10.12%. Cross Timbers Royalty Trust.

  4. SKLZ - $3.75 a share, This company is involved in helping mobile game publishers to build in social competition features, or something along those lines. We frankly don’t care. What we do care about is the various plays we can set up for opening on Tuesday.

    Option plays. In one example, we saw being able to buy a call deep ITM further out, then selling the same strike with a closer expiry, and making an up-front credit, These are, obviously, the best possible scenarios ever. It’s possible, but not likely. It does happen, though.

    Mostly the hard part is that you can’t simultaneously queue a buy and a sell of the same contract at the same time. All of our ideas revolve around getting exercised on deep ITM calls. They all look juicy.

  5. FUBO - $8.48 FuboTV, we like this stock, but don’t mind selling it off for short-term gain, either. There’s an estimated covered call return ATM of 10%, at the moment. Obviously that corrects fast, but it still gives us an idea of the premiums we’ll find in the options chains.


    That’s all, folks!