Trader Mike's Picks For Next Week
On vacation in Hawaii this week, but still thinking about investing and Building the Financial Fortress.
This week's post will feature three of my son's stock picks for next week's earnings calls. He has a pretty good track record so far this earnings season, correctly buying calls on earnings beats for WalMart, Nvidia, Roku and Shake Shack. Bad picks included Disney (strangle) and Beyond Meat (call). Uber ended up being okay with a strangle as the puts came into the money the week after as stock dropped below $40.
Here they are:
Home Depot - Home Depot (HD) reports earnings on 8/20 before the market opens; call options priced around $1 expiring 8/30 look good ($215); HD closed on Friday at $204.51.
Rationale:
Consistently beats earnings
US consumer is doing well based on WalMart results last week
Drop in mortgage interest rates will provide added lift to home refinancing (including cash out for home improvements) and home purchases
Target - Target (TGT) reports earnings on 8/21 before the market opens; call options priced around $1 expiring 8/30 look good ($90); TGT closed on Friday at $84.49.
Rationale:
Consistently beats earnings
US consumer is doing well based on WalMart results last week
Like WalMart, pursuing strong internet strategy
Foot Locker - Foot Locker (FL) reports earnings on 8/23 before the market opens; call options priced around $1 expiring 8/30 look good ($44); closed on Friday at $38.80.
Rationale:
Consistently beats earnings
US consumer is doing well based on WalMart results last week
Currently trading close to a 52 week low, could move up a lot with positive results
I hope you find this post useful as you chart your personal financial course and Build a Financial Fortress this year.
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