Happy Sunday!
For weeks I've been waiting for earnings to come around and provide some opportunities to take new trades, and that finally happened this week.
The icing on the cake was that this opportunity surfaced during my weekly live training session for the people in my course, so I could walk through the thought process live.
This week:
$60 profit in Pepsi (PEP)
$60 profit in PEP
PEP reported earnings this past Thursday and the market didn't like what they had to say initially, sending the stock down about 3% at the beginning of the trading day.
This was during my live training session on Thursday, so I decided to sell a $155 cash-secured put expiring Aug 16, and received $120 in premium up front.
Usually it's a matter of waiting for a few days, weeks or months for the position to close, but this time sentiment in PEP reversed pretty much instantly and the position closed for $60 profit in just 2 hours.
Typically if I see this happening in my own portfolio, I would be inclined to let it run for a bit, but as this was part of my ongoing options course, I thought it would be great to get a nice win.
PEP is a stock that turns up pretty regularly in my portfolio, in fact this makes it my 4th win out of 4 in PEP in 2024, with a total realized profit of $269 so far.
In 2023 this number was $1,007 from 10 winning trades out of 10.
Even if you're not in my course, you can still get nearly live trade updates as part of my private community (including this one). It costs $49 a month, so this one trade would have covered the cost for July.
Closing thoughts & useful links
A few weeks ago I mentioned that B2C stocks were showing weakness over this earnings period. PEP continued that trend and it will be interesting to see what happens with similar stocks in the weeks ahead.
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This article is for educational purposes only. This is my own portfolio which is being managed according to my goals and risk tolerance. Your situation is likely different and you should do your own due diligence before investing in stocks or options.