3 Stocks I Am Buying This Week (Not BABA)

TL;DR

The content discusses a unique strategy of selling cash-secured puts to buy stocks at desired prices and earn returns while waiting.

Transcript

there are three stocks I'm looking at buying this week two I already own so I'm adding the position one I used to own exited and now the price is getting attractive again so let's break down because I'm doing this a little bit different than what everybody's normally used to so the first company is Intel Intel I used to own sold on some covered cal... Read More

Key Insights

• 🖱️ The author uses a unique strategy of selling cash-secured puts to buy stocks at desired prices.
• 💻 By selling puts, the author earns returns on cash while waiting for stocks to reach the desired prices.
• ✳️ The strategy requires a thorough understanding of the desired prices and the risks involved.
• 🍉 Emphasizing the importance of emotional control, the author encourages investors to focus on long-term fundamentals rather than reacting to market fluctuations.
• ❓ The content highlights the benefits of joining a community of like-minded investors to learn and share investment strategies.
• 💻 Detailed analysis and calculations are provided to demonstrate the potential returns and risks of selling cash-secured puts.
• 🦖 The author discusses three specific stocks: Intel, T Price, and Southwest Airlines, and provides insights into their desired prices.

Questions & Answers

Q: What is the purpose of selling cash-secured puts?

Selling cash-secured puts allows the investor to buy stocks at desired prices while being paid to wait for the stock to reach that price. It provides a way to earn returns on cash while waiting.

Q: How does the process of selling cash-secured puts work?

The investor selects a stock and a desired price. They then sell put options, giving someone else the right to sell them the stock at the desired price. In return, the investor receives payment for the option. If the stock price falls below the desired price, the investor is obligated to buy the stock at the desired price, but they still keep the payment received.

Q: What are the potential risks of selling cash-secured puts?

The main risk is that the stock price may drop significantly below the desired price, resulting in the investor buying the stock at a higher price than the market value. However, if the investor is confident in the desired price and willing to hold onto the stock long-term, this risk can be mitigated.

Q: How does the author determine the desired prices for the stocks?

The author analyzes each stock's historical prices and determines a range of prices that they consider attractive. They then decide on a specific price within that range at which they are comfortable buying the stock.

Summary & Key Takeaways

• The content introduces a different approach to buying stocks by selling cash-secured puts.

• The author analyzes three stocks: Intel, T Price, and Southwest Airlines, and explains his desired prices for each.

• By selling puts, the author aims to buy the stocks at the desired prices while earning returns on his cash.