The Six Figure Portfolio Coaching Program The Perfect Income Stock - - PowerPoint PPT Presentation

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The Six Figure Portfolio Coaching Program The Perfect Income Stock - - PowerPoint PPT Presentation

Feb 22, 2023 181 likes •890 views

The Six Figure Portfolio Coaching Program The Perfect Income Stock 1 Welcome Hosts: Dave Durham and Emily Norris Six Figure Portfolio Coaching Web Site Calendar of Sessions Each Session is recorded and posted Customer

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The Six Figure Portfolio Coaching Program

The Perfect Income Stock

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  • Welcome
  • Hosts: Dave Durham and Emily Norris
  • Six Figure Portfolio Coaching Web Site
  • Calendar of Sessions
  • Each Session is recorded and posted
  • Customer Care: support@tradersreserve.com or

866-258-3008

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Live Trading Tomorrow Tuesday, August 21st at 12:00 PM Eastern

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Overview

  • Income Goals and Stocks
  • Stocks and Trades
  • Trades and Positions

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Whoops!

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Nothing happens before the trend and the company

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Overview

  • Trends
  • Companies
  • Stocks
  • Chains

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Trends

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A trend is in the real world, not the stock market

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As always, best in class stocks are potential trades in an addition to those identified through trends

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One Mega Trend

iWorld

The company providing the most choices for consumers or businesses wins The company providing the most customized products and services for consumers and businesses wins

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Current Trends

  • The New American Consumer
  • The Digital Cocoon
  • Sushi, Not Cashmere
  • Frack Baby Frack
  • Personalized Medicine

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New American Consumer

  • Millennials + Boomers 170MM plus
  • Frugal. not cheap
  • Digital
  • Experience, not stuff
  • Value includes brand, customer service

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Digital Cocoon

  • The home
  • The desk
  • The living room
  • The wallet
  • Family and friends

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Sushi, Not Cashmere

  • Incremental $ = experience, not stuff
  • Food
  • Personal services
  • Travel
  • What next?

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Frack Baby Frack

  • All about shale
  • The US fracker is the swing producer in the world
  • A new trading range for oil prices
  • High quality oil
  • More natural gas than can be used

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Personalized Medicine

  • A great many speculative stocks
  • Diagnostics is the place to start
  • A handful of treatments
  • Long term future of Biopharma
  • Surprisingly, generics too!

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What companies are the best performers, now and going forward, inside a trend?

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They are growing fasters than competitors - market share, revenues profits, margins, ?????

  • r

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They clearly define the future of that market

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Among the best companies, what defines the best stocks?

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The Best Stocks Are…

  • Undervalued compared to the market (forward P/E)
  • Undervalued compared to their market segment or

competitors (forward P/E)

  • Growing faster than sector and/or market
  • Charts show identifiable long term trading ranges

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There are exceptions based on the metrics that move the stock on Wall Street Today that metric is revenue/subscriber growth

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We are pursuing a cash and income generation strategy A great stock may not fit if it cannot throw

  • ff cash and income

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Remember, to be in my bullpen, and maybe yours….

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A call or put sold Monday morning. neo strike distant from the share price, must expire worthless at the end each week and generate a 0.5% in cash when sold, 25% a year, independent of the appreciation of the underlying shares

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You can miss opportunities in stocks that rise faster than the market if they are excluded due to your target rates of return in cash from the sale of options

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The option chains are critical….and this may mean you need to segment your portfolio by rates of return and potential appreciation

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We will cover this segmentation in the session on portfolio construction

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A Walk Through

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Before that, remember…

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Your Goals

Goals drive everything

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Just One Silo

One silo for income in many forms

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The Trend —The New American Consumer and its

  • ffspring…..the Digital Cocoon

SPREADS

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CALLS

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Digital Cocoon

  • The home
  • The desk
  • The living room
  • The wallet
  • Family and friends

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Payment Processing

  • American Express

(AXP)

  • CapitalOne (COF)
  • Discover Financial

Services (DFS)

  • Mastercard (MA)

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  • Paypal (PYPL)
  • Square (SQ)
  • Verifone (PAY)
  • Visa (V)
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Why SQ

  • Two pronged demand - traditional retailers, new gig

economy and small business users, the underserved

  • Complete solution - hardware,software, payment

processing interface, add on apps, add on services

  • New foray into restaurants, including food ordering
  • SQ capturing end user data

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Why SQ

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Why SQ

  • Serving the underserved
  • Restaurants
  • Gig economy
  • Non-checking, non-credit card users
  • Bitcoin

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Why SQ Stock

  • 48% Year over Year revenue growth
  • Adjusted (non-GAAP) earnings of $.13
  • Forward P/E north of 70
  • Street measuring revenue, transaction growth

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SQ Stock

Liquidity is important

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SQ Chart

  • Excellent chart
  • Has the stock

risen too quickly?

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SQ Puts

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Rate of Return

  • 11:49 Monday AM
  • 73.50 put selling for $1.25
  • Absolute return = 1.7%
  • Annualized return (worthless at expiration) = 124%

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SQ Calls

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Rate of Return

  • 11:49 Monday AM
  • 74.00 call selling for $1.25
  • Absolute return = 1.7%
  • Annualized return (worthless at expiration) = 124%

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Digital Cocoon

  • The home
  • The desk
  • The living room
  • The wallet
  • Family and friends

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The Living Room

  • Alphabet (GOOG)
  • Amazon (AMZN)
  • Apple (AAPL)
  • Disney (DIS)

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  • Facebook (FB)
  • Netflix (NFLX)
  • Spotify (SPOT)
  • Twitter (TWTR)
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Why NFLX

  • Market dominator, ubiquitous brand
  • Amazon Prime not a real competitor
  • International expansion still underway
  • Compelling lead in content development

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Why NFLX

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Why NFLX

  • Selling agains the cost of cable/subscription

services

  • NFLX wins on content
  • NFLX wins on cost
  • NFLX wins on convenience

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Why NFLX Stock

  • Large downdraft confirms Wall Street’s focus -

subscriber growth

  • Stock falls from $425 to $325
  • Now in a defined trading range
  • Can you ignore the P/E? We cannot

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NFLX Stock

Liquidity not an issue

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NFLX (ugly) Chart

  • Ugly chart
  • Has the stock

fallen too sharply?

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NFLX (trading range) Chart

  • Will the trading

range hold?

  • What if it does

not?

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Before the Chains…

  • Is NFLX a stock you can trade?
  • It is high risk, is there something I can trade?
  • One of my tactics is the silly put

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NFLX Puts

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Rate of Return

  • 2:30 Monday PM
  • 300.00 put selling for $2.83
  • Absolute return = .94%
  • Annualized return (worthless at expiration) = 11%

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Not a Stock to Trade

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How do I Find Stocks I Can Trade?

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Finding Stocks

  • Your existing portfolio
  • My recommendations
  • Your current sources
  • The real world
  • Start with what you know, see, can come to

understand

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Simple Filters

  • P/E against the S+P 500
  • P/E against its sector
  • Revenue growth against S+P, sector
  • Profit growth against S+P, sector
  • Profit margin growth against S+P, sector
  • Implied volatility/moving average bands around

earnings dates

  • And, of course, 0.5% a week

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Create a Bullpen

  • Identify, then select 15-30 companies
  • Diversify across traditional sectors
  • Segment = cash or appreciation or both
  • Specify key dates, i.e. earnings
  • Track performance whether you trade a

stock or not

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Some Sources

  • Your broker’s resources
  • Yahoo Finance
  • CBOE - download list of weeklies
  • Options Industry Council
  • Links coming out of SeekingAlpha
  • Industry newsletters

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Open Positions

  • Devon Energy (DVN) 8/24 43.50 put
  • Square (SQ) 8/24 75 call
  • TripAdvisor (TRIP) 8/24 54 call
  • Valero (VLO) 8/24 116 put
  • Yelp (YELP) (8/24) 48 call

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Tomorrow’s Trades

  • Do we do more “consumer” stocks?
  • Synchrony Financial (SYF) - private label credit

cards - an oversight?

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Tomorrow’s Trades

  • Diversification?
  • Gilead Sciences (GILD) 8/31 72.00 put
  • Marriott (MAR) 8/31 ITM 125.00 put

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Wrapping Up

  • Time for Q&A
  • Recording available tomorrow at 9:00 AM
  • Reminder, see you next tomorrow at 12:00 for Live Trading
  • Email additional questions to 6figport@gmail.com

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DISCLAIMER: This is educational and informational content for buying stocks and selling options to generate income. Nothing presented in this coaching or training program is intended as, or should be construed to be, a recommendation to buy or sell any specific security. These are not recommendations. This information is provided for educational and informational purposes only. Use this information at your own risk. LIABILITY: Readers agree to hold Traders Reserve, LLC completely harmless and free from liability of any kind as a result of using the techniques and strategies described herein. This program and content is for educational and informational use only. Use caution and seek the advice of an outside registered investment

  • advisor. Prior to making any investment or trading decisions, reader agrees to exercise due diligence when it comes to making trading decisions and all

information that has been provided herein should be independently verified. You agree the Traders Reserve, LLC is not responsible in whole or in part for the

  • utcome of your trading decisions. There is no implied warranty for the fitness or suitability of this information for your use, and you expressly waive any liability
  • r claim arising from such usage.

U.S. Government Required Disclaimer – Stock, options and futures trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using any of the Options Income Blueprint strategies or tactics, or the information in this website or accompanying material will generate profits or ensure freedom from losses. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. 69