STOCK SHOWDOWN - Writing Covered Calls - NKE vs SBUX

Which stock would I buy for Writing Covered Calls - NKE vs SBUX
Youtube Channel	Facebook Group	UPGRADE!	My CC Podcasts	Spreadsheets	CPTDashboard
Click here	Click here	Click here	Click here	Click here	Click here
DISCLAIMER: This stock comparison is 100% for entertainment. I'm not recommending these stocks as a purchase. The research jump links in this blog post are ones that I use to start my stock investing research. Always do your own due diligence and never risk more money then you are willing to lose. Think of it like this blog post as seeing the world thru my eyes.
COVERED CALL SHOWDOWN! - WHICH STOCK WOULD I PURCHASE TO WRITE A COVERED CALL
NIKE, Inc.
	NKE	vs		SBUX
Starbucks Corporation
Seeing the World Thru my Eyes - the Straight Talk
These 2 companies are some of the most recognizable on the planet and many would say ... just stop trading them and own them long term ... and that would be something we should do ... but for selling premium purposes ... which one is a better covered call candidate and how do these 2 companies stack up against one another?
NOTE - AT THE TIME OF THIS POSTING, BOTH COMPANIES STOCK PRICES BELOW
NKE			SBUX
$127.22			$83.79
NIKE, Inc.			Starbucks Corporation
Just in case you didn't know ... here's some basic company information about what they do.
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories, including running, NIKE basketball, the Jordan brand, football, training, and sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, walking, wrestling, and other outdoor activities; and apparel with licensed college and professional team and league logos NIKE, Inc. in 1971... NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.			Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in three segments: Americas; International; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, and iced tea; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores ... Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
Yahoo Summary-NKE			Yahoo Summary-SBUX
#1 - The Golden Rules of Covered Call Writing!
The Golden Rules of Covered Call Writing are subjective ... the basic idea is to avoid as much risk as possible when determining a new stock purchase for a Covered Call Write ... we can not avoid risk entirely but using certain rules or guidelines will help use reduce that risk during the timeframe we use the stock for selling premium. I've included the most popular rules or guidelines below which include: avoid a company's earnings report, is the company apart of the S&P 500 or Dow Jones?. Does the company have a dividend? Does the company have same store sales reports? Do you want to own the stock? > This list isn't the end all be all list but a starter list for your research and lowering your risk ... but again, we can not avoid risk .
NIKE, Inc.			Starbucks Corporation
S&P 500?	OPTIONS?	DIVIDEND?	S&P 500?	OPTIONS?	DIVIDEND?
Confirm	Option Chain-NKE	Verify-NKE	Confirm	Option Chain-SBUX	Verify-SBUX
Seeing the World Thru my Eyes - the Straight Talk
No clear winner here but I do like SBUX dividend ( 1.95%) over NKE (0.84%)
#2 - What story is the chart telling us?
When buying stocks to Write Covered Calls the prime objective is for the stock to trade sideways to higher ... selling premium traders will purchase a stock and sell the Out of the Money strike to collect both the premium and the stock appreciation. I always like to look at a chart and ask the question "what story is this chart telling me?" ... if its trending higher, this is good. If its trending lower, well, I really need to do my research if I'm going to invest in a company that its stock is trending lower.
See Support-NKE			See Support-SBUX
Seeing the World Thru my Eyes - the Straight Talk
They both have rallied off the March lows with NKE getting a serious bump with today's earnings report ... NKE looks strong ... SBUX isn't chopped liver either but NKE gets the edge here
CLICK HERE > for your Special FREE Month Offer <
	FREE OFFER EXPIRES SOON!
#3 - What are "THEY" saying?
I'm not an expert when it comes to whether a stock is undervalued or overvalued or if its a Buy or a Sell ... so I use some great websites to 'paint a picture' for me. Some will have a stock as a Buy and another will have it as a Sell ... so I usually have 3 or 4 different sources to help me.
NIKE, Inc.			Starbucks Corporation
Zacks	Yahoo Prem	AmBull	Zacks	Yahoo Prem	AmBull
HOLD	OVERVALUED	STAY IN CASH	HOLD	OVERVALUED	STAY IN CASH
Corfirm Rating - NKE	Yahoo Summary-NKE	Trending? -NKE	Corfirm Rating - SBUX	Yahoo Summary-SBUX	Trending? -SBUX
Seeing the World Thru my Eyes - the Straight Talk
Surprised that both of these stocks are identical on all (3) of these although I would think with NIKE's earnings blowout this will change ... this new information make NKE the clear winner ... for now
#4 - SHOW ME THE MONEY!
Another great visual when quickly trying to determine if this/these are companies we want to own ... remember, we have to own these companies and if the picture isn't telling us a clear picture of a companies prospects then I have to make sure I really do my homework.
Yahoo Summary-NKE			Yahoo Summary-SBUX
Seeing the World Thru my Eyes - the Straight Talk
Both are profitable but something interesting ... SBUX isn't that far behind in Rev's and Earnings yet NKE has a market cap of $199B where as SBUX is only $93B ... so one would think the value play here is SBUX
#5 - What kind of Covered Call profits can we make?
Giving someone the right but not the obligation to take your shares can be very profitable if done correctly ... typically most Covered Call writers will try to make 3% Cash on Cash profit in a 30 day period. Mastering this skill of selling premium can increase your annual returns vs a buy and hold investment strategy. Below is a (1) deviation Out of the Money Covered Call that one might do if they sell premium.
Looking at a 30 day window using (3) deviationS Out of the Money
	THESE ARE NOT REAL TIME! CLICK LINK BELOW FOR THAT			POSTED >	9/23/2020
NKE	Current Price	Strike Price	LAST TRADE	30 day return	Expiration
	$127.22	$128.00	$4.85	4.43%	9/18/2020
	$127.22	$129.00	$4.20	4.70%	9/18/2020
	$127.22	$130.00	$4.33	5.59%	9/18/2020
			THIS IS NOT THE BID OR MID
Check this stocks options here >		https://finance.yahoo.com/quote/NKE/options?p=NKE
	THESE ARE NOT REAL TIME! CLICK LINK BELOW FOR THAT
SBUX	Current Price	Strike Price	LAST TRADE	30 day return	Expiration
	$83.79	$84.50	$3.00	4.43%	9/18/2020
	$83.79	$85.00	$2.88	4.88%	9/18/2020
	$83.79	$85.50	$2.56	5.10%	9/18/2020
			THIS IS NOT THE BID OR MID
Check this stocks options here >		https://finance.yahoo.com/quote/SBUX/options?p=SBUX
Seeing the World Thru my Eyes - the Straight Talk
No clear winner here ... but WE would be the winners as both of these stocks have options and they pay for a 30 day trade about 4% which is higher than the 3% we try to achieve
CLICK HERE > for your Special FREE Month Offer <
	FREE OFFER EXPIRES SOON!
#7 - "HURRY HURRY, READ ALL ABOUT IT!"
The internet has so many resources for good information on companies ... whether its news, events or just some blogger with a great perspective on a company's prospects ... I love just glancing at the news feeds to get a feel for what's going on with a company I'm researching ... below are some helpful jump links I use.
Seeking Alpha		DivChannel	Seeking Alpha		DivChannel
Alpha Articles Search-NKE		Verify-NKE	Alpha Articles Search-SBUX		Verify-SBUX
MY WINNER IS!!!
	NKE	vs		SBUX
	SCORE		SCORE
	4		4
Seeing the World Thru my Eyes - the Straight Talk Recap!
WHAT?! It's a TIE ... yes, when I went thru and gave points for each category both NIKE and SBUX scored 4 each ... this doesn't really surprise me as they are very similar even though they are in 2 very different businesses ... my takeaway is Starbucks seems to be UNDERValued as compared to NIKE so I would prefer buying shares in them and Writing the OTM CC ... with NIKE's rally today on earnings ... might see it head to another level as they are killing it! ... I like Starbucks over NIKE but they are both Winners here!
By now you're probably wondering 'what is this Upgraded CPT Dashboard Subscription?' The majority of the super cool research you see on this blog comes from the UCPT Dashboard and all its functionality. See, it's a Covered Call research spreadsheet that keeps the numbers in front of you whilst you research your next Covered Call stock purchase ... but that is only half the story ... as a member you get Charts of the Week, CPT's Real Time Trade blogs, Exclusive member video's and stock market commentary emails about 3 times a week ... IF any of that interest you ... I've got a FREE MONTH OFFER waiting for you ... just click over and check it out.
CLICK HERE > for your Special FREE Month Offer <
	SAVE $19.95 NOW!
The BONUS Deeper Dive!
#8 - More number that help us Up Our Game!
I'm not an expert when it comes to whether a stock is undervalued or overvalued or if its a Buy or a Sell ... so I use some great websites to 'paint a picture' for me. Some will have a stock as a Buy and another will have it as a Sell ... so I usually have 3 or 4 different sources to help me.
FFTY	ST50	S&P 500	FFTY	ST50	S&P 500
-	-		-	-
Does either of these companies have Earnings Report (next 30 days)
April 16, 2020		-		May 16, 2020
~	Dec 18, 2020 - Dec 22, 2020		~	Oct 29, 2020 - Oct 29, 2020
Verify-NKE			Verify-SBUX
Dividend 2%	EX-DATE	Ave Vol	Dividend 2%	EX-DATE	Ave Vol
0.75%	Aug 28, 2020	6.396M	1.90%	Aug 06, 2020	8.311M
Verify-NKE			Verify-SBUX
What story is the chart telling you?
StockCharts	Finviz	BarCharts	StockCharts	Finviz	BarCharts
View Chart-NKE	See Support-NKE	View Chart-NKE	View Chart-SBUX	See Support-SBUX	View Chart-SBUX
I hope you enjoyed this Covered Call Stock Showdown blog ... as always you know this is for entertainment and before EVER investing a nickel of your hard earned money you need to do your research or what they call due diligence ... no, nada, zip zilcho stock recommendations were made here ... this ALL should be your STARTING POINT for determining if either of these companies meet your stock investing risk profile. Good luck everyone!
Disclaimer - Yes - at the time of this posting I do have a position in this equity. By posting this I am by no means recommending this equity and am not front running for its performance. I have risked my own money and am accountable for the trade results.
Remember, the content of this site is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Please read the full disclaimer posted below and visit cptdashboard.com for my privacy policy.
Trading stocks and options have risk. Required reading prior to placing money at risk with options is the ODD which is posted below. "The Characteristics & Risks of Standardized Options" Prior to buying or selling an option, investors must read a copy of the Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD). It explains the characteristics and risks of exchange traded options.
- http://www.optionsclearing.com/about/publications/publication-listing.jsp
Image credits - stockcharts.com | barchart.com | foolcdn.com | yahoo.com | earningswhispers.com
© 2020 Core Position Trading, LLC and the CPT Dashboard - All Rights Reserved					Disclaimer
> BLOG ENDS HERE - ALL DATA BELOW - SEO DATA>
The Ultimate Writing Covered Call Screener, Spreadsheet, Dashboard is the Upgraded CPT Dashboard.
> Join today and receive (with your annual subscription) one FREE month
Click this link to join today > www.cptdashboard.com/join/
Core Position Trading, LLC is not registered as an investment adviser with the U.S. Securities and Exchange Commission. Rather, Core Position Trading, LLC relies upon the publishers exclusion from the definition of investment adviser as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Core Position Trading, LLC does not offer or provide personalized investment advice. This site and all others owned and operated by Core Position Trading, LLC are bona fide publications of general and regular circulation offering impersonal investment-related advice to member and /or prospective members >USE AT YOU OWN RISK< and >FOR EDUCATIONAL PURPOSES ONLY<. Always do their due diligence (checking your own numbers for integrity) when putting hard earned money at risk and never risk more than you can afford to lose.
Remember, the content of this site is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Please read the full disclaimer posted below and visit cptdashboard.com for my privacy policy.
All rights and trademarks reserved - Core Position Trading, LLC - 2020
http://www.CorePositionTrading.com and http://www.CPTDashboard.com
interested in watching more of my videos be sure to visit my Youtube Channel - Core Position Trading
http://www.youtube.com/c/CorePositionTrading
writing weekly covered calls	,	writing weekly covered calls,		covered call writing example	,
writing puts to purchase stocks		writing puts to purchase stocks		covered call strategy example
writing put options for income		writing put options for income		covered call sell to open
writing in the money covered calls		writing in the money covered calls		covered call premium
writing covered calls for income		writing covered calls for income		covered call option strategy example
writing covered calls for a living		writing covered calls for a living		covered call option example
writing calls for income		writing calls for income		covered call option
writing calls and puts		writing calls and puts		covered call ideas
writing call options for income		writing call options for income		covered call exit strategy
writing a put option		writing a put option		covered call example
writing a covered call option		writing a covered call option		covered call etf
writing a call option		writing a call option		covered call dividend strategy
write cash secured puts		write cash secured puts		cash secured puts to generate income
stocks to sell puts on		stocks to sell puts on	cash secured puts for income,	cash secured puts for income
stock options sell to cover		stock options sell to cover		cash secured put strategy
stock option selling strategies		stock option selling strategies		cash secured put options
spy covered calls		spy covered calls		cash secured put
selling weekly puts		selling weekly puts		cash secured equity puts
selling weekly put options		selling weekly put options		cash covered put strategy
selling weekly options strategy		selling weekly options strategy		cash covered call
selling weekly options		selling weekly options		call writing strategy
selling weekly covered calls		selling weekly covered calls		call to sell
selling stock options		selling stock options		call selling strategy
selling spy puts		selling spy puts		call option writing strategy
selling puts strategy		selling puts strategy		call option sell to open
selling puts on stock you own		selling puts on stock you own		buying and selling calls
selling puts on dividend stocks		selling puts on dividend stocks		buy write covered call
selling puts and calls on the same stock		selling puts and calls on the same stock		buy sell call
selling puts		selling puts		best stocks to write covered calls on
selling put options strategy		selling put options strategy		best stocks to write covered calls against
selling options on stock you already own		selling options on stock you already own		best stocks to sell puts on
selling in the money puts		selling in the money puts		best stocks to sell puts against
selling in the money options		selling in the money options		best stocks to sell puts
selling in the money covered calls		selling in the money covered calls		best stocks to sell put options
selling in the money calls		selling in the money calls		best stocks to sell options
selling deep in the money puts		selling deep in the money puts		best stocks to sell covered calls
selling deep in the money calls strategy		selling deep in the money calls strategy		best stocks to sell call options
selling deep in the money calls		selling deep in the money calls		best stocks for covered call writing
selling covered puts		selling covered puts		best stocks for cash secured puts
selling covered options		selling covered options		best puts to sell
selling covered calls strategy		selling covered calls strategy		best put options to sell
selling covered calls on dividend stocks		selling covered calls on dividend stocks		best options to sell
selling covered calls in ira		selling covered calls in ira		best option selling strategy
selling covered calls deep in the money		selling covered calls deep in the money		best covered call strategy
selling covered calls		selling covered calls		best covered call options
selling covered call options		selling covered call options		best call options to sell
selling cash secured puts strategy		selling cash secured puts strategy		advanced covered call strategies
selling cash secured puts for income		selling cash secured puts for income		open sell position
selling cash secured puts		selling cash secured puts		making money with covered calls
selling cash covered puts		selling cash covered puts		make money selling puts
selling calls on stock you own		selling calls on stock you own		make money selling options
selling calls and puts		selling calls and puts		in the money covered call strategy
selling calls against long position		selling calls against long position		in the money covered call
selling calls		selling calls		covered writing options
selling call options strategy		selling call options strategy		covered write option strategy
selling call and put options		selling call and put options		covered put example
selling an option contract		selling an option contract		covered option
selling a put option in the money		selling a put option in the money		covered equity call writing
selling a put example		selling a put example		covered calls made easy
selling a put contract		selling a put contract		covered calls in ira
selling a call option in the money		selling a call option in the money		covered call writing strategy
selling a call option example		selling a call option example		covered call writing of equity options
sell to open put option example		sell to open put option example		covered call writing for income
sell to open put option		sell to open put option		sell to open
sell to open put example		sell to open put example		sell to cover stock options
sell to open put		sell to open put		sell to cover options
sell to open option		sell to open option		sell to close covered call
sell to open covered put		sell to open covered put		sell put option example
sell to open covered call		sell to open covered call		sell put option
sell to open covered		sell to open covered		sell covered call and buy put
sell to open call option example		sell to open call option example		sell calls against stock
sell to open call option		sell to open call option		sell call sell put option strategy
sell to open call example		sell to open call example		sell call sell put
sell to open call		sell to open call		sell call option in the money
sell to open a call		sell to open a call		sell call option
sell to open		sell to open		secured put
sell to cover stock options		sell to cover stock options		qualified covered call
sell to cover options		sell to cover options		put selling etf
sell to close covered call		sell to close covered call		put sell option example
sell put option example		sell put option example		put option sell to open
sell put option		sell put option		options sell to open
sell covered call and buy put		sell covered call and buy put		option writers make money
sell calls against stock		sell calls against stock		option selling strategies
sell call sell put option strategy		sell call sell put option strategy		option sale
sell call sell put		sell call sell put		put selling etf
sell call option in the money		sell call option in the money		put sell option example
sell call option		sell call option		put option sell to open
secured put		secured put		options sell to open
qualified covered call		qualified covered call		option writers make money
option sale		option sale		option selling strategies
Remember, the content of this site is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Please read the full disclaimer posted below and visit cptdashboard.com for my privacy policy.
Topics I discussion range from:
Using stocks to Write Covered Calls
The Covered Call Investment strategy
Using Covered Calls to earn money
Explaining the Covered Call strategy
Selling Covered Calls
tastyworks	stock options,	trading basics,	cost basis,	Trading,
	tastytrade,	Covered Call,	long stock,
	profit,	Call Option,	buying stock,	learn to trade,
finance	trading tutorial,	writing calls,	bullish trades,	beginner trading,
tastytrade	projectoption		strike,	options,
			short options"	options trading,
The Ultimate Writing Covered Call Screener, Spreadsheet, Dashboard is the Upgraded CPT Dashboard.
> Join today and receive (with your annual subscription) one FREE month
Click this link to join today > www.cptdashboard.com/join/
Remember, the content of this site is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Please read the full disclaimer posted below and visit cptdashboard.com for my privacy policy.
All rights and trademarks reserved - Core Position Trading, LLC - 2020
http://www.CorePositionTrading.com and http://www.CPTDashboard.com
interested in watching more of my video's be sure to visit my Youtube Channel - Core Position Trading
http://www.youtube.com/c/CorePositionTrading
CREDIT - How and Why to Use a Covered Call Option Strategy
BY ADAM MILTON
Updated July 29, 2019 > https://www.thebalance.com/determining-intrinsic-value-1031125
A covered call is an options strategy involves trades in both the underlying stock and an options contract. The trader buys (or already owns) the underlying stock. They will then sell call options for the same number (or less) of share held and then wait for the options contract to be exercised or to expire.
Exercising the Options Contract
If the options contract is exercised (at any time for US options, and at expiration for European options) the trader will sell the stock at the strike price, and if the options contract is not exercised the trader will keep the stock.
For a covered call, the call that is sold is typically out of the money (OTM). This allows for profit to be made on both the options contract sale and the stock if the stock price stays below the strike price of the OTM option. If you believe the stock price is going to drop, but you still want to maintain your stock position, for the time being, you can sell an in the money call option (ITM).
For this, you will receive a higher premium from the buyer of your call option, but the stock must fall below the ITM option strike price, otherwise, the buyer of your option will be entitled to receive your shares if the share price is above the option's strike price at expiration (you lose your share position). Covered call writing is typically used by investors and longer-term traders, and is rarely used by day traders.
How to Create a Covered Call Trade
Purchase a stock, and only buy it in lots of 100 shares.
Sell a call contract for every 100 shares of stock you own. One call contract represents 100 shares of stock. If you own 500 shares of stock, you can sell up to 5 call contracts against that position. You can also sell less than 5 contracts, which means if the call options are exercised you won't have to relinquish all of your stock position. In this example, if you sell 3 contracts, and the price is above the strike price at expiration, 300 of your shares will be called away, but you will still have 200 remaining.
LEARN MORE
Wait for the call to be exercised or to expire. You are making money off the premium the buyer of the call option pays to you. If the premium is $0.10 per share, you make that full premium if the buyer holds the option until expiration and it is not exercised. You can buy back the option before expiry, but there is little reason to do so, and this isn't usually part of the strategy.
Risks and Rewards of the Covered Call Options Strategy
The risk of a covered call comes from holding the stock position, which could drop in price. Your maximum loss occurs if the stock goes to zero. Therefore, you would calculate your maximum loss per share as:
Maximum loss per share = (Stock entry price - $0) + Option premium received
For example, if you buy a stock at $9, and receive a $0.10 option premium on your sold call, your maximum loss is $8.90 per share. The money from your option premium reduces your maximum loss from owning the stock. The option premium income comes at a cost though, as it also limits your upside on the stock.
You can only profit on the stock up to the strike price of the options contracts you sold. Therefore, calculate your maximum profit as:
Maximum profit = (Strike price - stock entry price) + Option premium received
For example, if you buy a stock at $9, receive a $0.10 option premium from selling a $9.50 strike price call, then you maintain your stock position as long as the stock price stays below $9.50 at expiration. If the stock price moves to $10, you only profit up to $9.50, so your profit is $9.50 - $9.00 + $0.10 = $0.60.
If you sell an ITM call option, the underlying stock's price will need to fall below the call's strike price in order for you to maintain your shares. If this occurs, you will likely be facing a loss on your stock position, but you will still own your shares, and you will have received the premium to help offset the loss.
Final Word on the Covered Call Options Strategy
The main goal of the covered call is to collect income via option premiums by selling calls against a stock that you already own. Assuming the stock doesn't move above the strike price, you collect the premium and maintain your stock position (which can still profit up to the strike price).
Traders need to factor in commission when trading covered calls. If commissions will erase a significant portion of the premium received, then it isn't worthwhile to sell the option(s) and create a covered call.
Link can be accessed here > https://www.thebalance.com/determining-intrinsic-value-1031125