Hello!
Apologies for missing last week's newsletter. I was down with something and just didn't have the energy to write the newsletter after teaching my course for 6 hours.
But anyway, it's back to business as usual this week.
This week:
$115 profit in Caterpillar (CAT)
$115 profit in CAT
This week features the rare appearance of CAT, not because I don't like the stock but because it's relatively high-priced at $300+, so I try to wait for really good trade setups before risking $30,000 in notional value - which is what happened in the trade below.
I sold a $300 cash-secured put expiring Jul 19 for $215 in premium.
Just 3 trading days later, CAT rebounded and my closing order got hit, locking in $115 or 54% of max profit. Really great return for this trade.
Like I said, CAT's appearance in my portfolio is pretty rare. I checked and I only traded it once in 2023, bringing in $98 in realized profit.
The good news with higher-priced stocks is that their premium tends to be higher as well. That played out with the initial trade bringing in over $200 in premium and the final realized profit coming in at $115.
As always, these trades are shared in close to real-time to my private community. It costs $49 a month, so this one trade would have more than paid for itself in June.
Closing thoughts
Earnings season is upon us with both WBA and NKE getting pretty much decimated after their earnings. Both companies are retail-facing, and there are definitely signs that consumers are really starting to feel the pinch.
It'll be interesting to see how the rest of the companies fare in the weeks ahead.
Have a good weekend!
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.