As part of KukaXoco's financial advisory services, we track a variety of stock, futures and currency markets, looking for potential trading positions. These are curated from a variety of sources, and then monitored with our proprietary trading algorithms. Feel free to make use of them as well. (Real-time advisory updates available from KukaXoco Financial by email).
Two related Web pages at kukaxoco.org include:
www.kukaxoco.org/financial-trades.html - a table of recent trades we have executed in the markets for ourselves and our clients; and
www.kukaxoco.org/financial-charts.html; - a database of interesting financial graphs worth contemplating while planning your trading activities;
SPECIAL OPPORTUNITY! In the winter of 2020 / spring of 2021, KukaXoco will be announcing a variety of partnerships, launching a variety of coca products, and executing a crowdsourcing campaign to raise funds to establish our coca research and production centers in Colombia and Peru. For those interested in the funnest of investments, and want to get in on the ground stage for the next green leaf after marijuana (which attracted billions in investments) - coca, KukaXoco is offering investment opportunities. Please contact us for more information.
Cheniere Energy Partners (CQP) 33.74 @ 29 May 2020
In the 40s in 2019, dropped to 19 on 18 March 2020 due to coronavirus. 33 is around its 5-year average. Dividend yield is 7.74%
Had a very favorable write-up in the 01 June 2020 Barron's (then around 33/34) - "Cheniere Energy Partners, an MLP, has long-term contracts with its customers and offers a rich dividend that is considered safe". Barron's article (locked) at:
Buy This Energy Company. It Raised Its Dividend Twice This Year.
Wayfair (W) 171.55 @ 29 May 2020
Went from 90 to 150 to 190 in 2019, dropping to 28 on 16 March 2020 due to the coronavirus, before shooting up to 188 six weeks later. No dividend.
Had an unfavorable write-up in the 16 May 2020 Barron's (then around 173). Wayfair's stock could drop 25% as economy reopens - the online furniture seller’s stock has soared ninefold during the lockdown. It could come under heavy pressure and traditional furniture stores get back to business. Barron's article (locked) at:
Wayfair's Soaring Stock Could Plunge When The Economy Reopens.
Carvana (CVNA) 92.98 @ 29 May 2020
Rose from 30 to 110 between February 2019 and February 2020, dropping back to 30 on 16 March 2020 due to the coronavirus. No dividend.
Had an unfavorable write-up in the 16 May 2020 Barron's (then around 92/93).
Bulls hail Carvana as the Amazon.com of car retailers. But its stock, which
quadrupled in April's big rally, could easily cause sticker shock. Why one
bear sees a 67% decline. Barron's article (locked) at:
Used-car prices are plunging. So why is Carvana's stock soaring. Time for a rethink..
SP500 Index (SPY) 3581 @ 04 Sep 2020
To offset a decline of about 10% around the presidential election, investors
could buy three SP500 November $3500 puts for $42,900 to hedge a $1 million
portfolio. If the SP500 declines to 3200 at expiration, the put value is worth
$90,000, creating a $48,000 profit on the hedge. If the index is above the
put strike price at expiration, the trade fails.
03 September 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/this-election-could-be-really-weird-hedge-your-portfolio-51599130801
Walt Disney Corporation (DIS) 130.53 @ 14 Aug 2020
In early July, we advised investors to buy Disney's using a "half and half" strategy - buying it with 50% in stock and 50% in put options (at the time, Disney was at $113 and the August $110 puts could be sold for $4.30). In early August, Disney reported good results, surging to around $130, giving a 17% gain on the stock and a 100% return on the options that are now worthless (no one wants to invoke the option and sell at $110).
With more upside for Disney, investors can do another "half and half" investment. Buy 500 shares at the market price on Monday, and sell five September $130 puts at $4.50. Again, if the stock rises, you keep the put premium. If the stock falls, you are buying more Disney at $125.50 (at the risk of it dropping below $125.50)
15 August 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/large-regional-banks-offer-steady-dividends-for-now-51597316412
SPDR Gold Shares (GLD) 190.81 @ 07 Aug 2020
When GLD was around $164, and associated options were trading briskly, we recommended that investors buy the September $165 call option for $6. The call is now worth about $27, representing a 350% return.
Now, with the SPDR ETF around $191, investors can sell the November $190 put for $9.35 and buy the November $194 call for $9.05. The strikes were chosen to eliminate the cost of trading the ETF’s options. The so-called risk reversal -- selling a put and buying a call with a higher strike price but a similar expiration -- positions investors to buy the shares lower and to participate in rallies.
08 August 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/betting-that-the-rush-into-gold-isnt-over-yet-51596708001
SPDR Gold Shares (GLD) 190.81 @ 07 Aug 2020
When GLD was around $164, and associated options were trading briskly, we recommended that investors buy the September $165 call option for $6. The call is now worth about $27, representing a 350% return.
Now, with the SPDR ETF around $191, investors can sell the November $190 put for $9.35 and buy the November $194 call for $9.05. The strikes were chosen to eliminate the cost of trading the ETF’s options. The so-called risk reversal -- selling a put and buying a call with a higher strike price but a similar expiration -- positions investors to buy the shares lower and to participate in rallies.
08 August 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/betting-that-the-rush-into-gold-isnt-over-yet-51596708001
Lululemon Athletica (LULU) 304.77 @ 02 Jul 2020
With Lulelemon around $305, investors could sell the September $300 put
options for $22.30 and buy the September $320 call options for $17.90,
allowing you to either buy at a lower cost or profit from a signficiant
rise in stock price, but if it falls way below $300, you still have to
buy at $300. Depends on how well they take on their competition, Peloton.
03 June 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/how-to-play-lululemon-as-it-moves-into-pelotons-space-51593684001
Apple Computer (AAPL) 353.63 @ 26 Jun 2020
With Apple stock around $354, Apple's $345 puts could be sold for about $17. If the stock is above the strike price at expiration, investors can keep the put premium If the stock is at $345 at expiration, investors get to buy the stock at an effective price of $328. During the past 52 weeks, the stock has ranged from $192 to $372.
26 June 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/tech-stocks-may-be-getting-ready-for-a-serious-pullback-what-investors-should-do-51593079201
Winnebago Industries (WGO) 68.36 @ 19 Jun 2020
"With Winnebago at $68.36, the July $70 call could be bought for about $5.40
and the July $80 call could be sold for about $2.20 The trade, which costs
$3.20, is worth a maximum of $6.80 if the stock is at $80 at expiration.
During the past 52 weeks, the stock has ranged from $16.94 to $71.30. Shares
are up 29% so far this year and up 75% from a year ago. The stock must
break into a new, higher trading range for this trade to work."
20 June 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/taking-winnebago-options-for-a-ride-51592474402
Delta Air Lines (DAL) 25.21 @ 29 May 2020
With the shares of Delta around $25, investors can buy the January $27 call
option and sell the January $32 call spread for about $2.20. If the stock
is at $32, they make a profit of $2.80, or 127%. During the past 52 weeks,
Delta has ranged from $17.51 to $63.44.
01 June 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/battered-delta-stock-could-take-off-heres-how-to-play-it-51590660001"
Slack (WORK) 35.05 @ 29 May 2020
Slack's stock is a bet on the future of work - how to play it with options:
with the stock around $31.70, investors who want to wager on Slack's earnings
report cans sell the June $29 put and but the June $32 call for a net cost
of $1.10 - if the stock rallies to $40 after the June 4th earnings report,
the call is worth $8.
23 May 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/slack-stock-is-a-bet-on-the-future-of-work-how-to-play-it-with-options-51590055201
Peloton (PTON) 42.19 @ 29 May 2020
Goldman Sachs recommends: buy the October $50 call option for Peloton that covers its August earnings report time period - with the stock at $48.42, the call option costs $9, so if it is at $65 at expiration, the option is worth $15 and you net $6. Otherwise if the stock is below $50, you lose $9, and in the last year, the stock has traded between $18 and $50, thus you are hoping for good news.
16 May 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/peloton-morgan-stanley-and-10-more-stocks-for-the-covid-19-era-51589450401
Morgan Stanley (MS) 44.20 @ 29 May 2020
Goldman Sachs recommends buying the September $39 call option for Morgan Stanley. With the stock at $37.29, the option costs $3.30. If the stock is at $48 at expiration, the call is worth $9 and you net $6, but you lose the $3.30 if it is below $39. During the past 52 weeks, the stock has traded between $27 and $58.
16 May 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/peloton-morgan-stanley-and-10-more-stocks-for-the-covid-19-era-51589450401
PayPal Holdings (PYPL) 155.01 @ 29 May 2020
A strategy for the nervous investor - with the stock around $145, investors who want to buy shares can sell the August $130 put for $5.80 - if the stock is above the strike price at expiration, investors keep the premium, but should the stock be below the put strike price at expiration, investors are obligated to buy the stock or cover the put at a higher price.
09 May 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/a-paypal-options-move-for-the-nervous-investor-51588847401
Tyson Foods (TSN) 61.44 @ 29 May 2020
Beaten-down Tyson Foods offers an options opportunity - buy the stock at around $60, buy the January $60 call option and sell the January $70 call for $4 - it it hits $70, the profit is $6, a 150% return
02 May 2020 recommendation from Barron's. Article (locked) at:
www.barrons.com/articles/bet-on-tyson-foods-to-bounce-back-from-coronavirus-troubles-51588240802