Welcome to 2023!
We come in the new year the same we went out:
· The S&P trading lower
· The NASDAQ trading lower
· The Russell 2000 (small cap stocks) trading higher
· Treasury bonds slightly higher
Again, a market with wide swings in trading and volatility that challenged investors and traders throughout 2022.
We will do a complete 2022 review and 2023 preview webinar of our Triple Play Income approach here in January. Look for an email later this week for the place and time.
Here are two positions we can re-enter today.
Gilead Sciences (GILD): 85.83
Biotech and pharma stocks were a haven for investors in 2022 and for the near term we expect that trend to continue. We saw Gilead Sciences stock come to life in the last 2 months of the year as were able to collect larger credits for selling puts and calls.
We were called out of our GILD stock in early December. Let’s re-enter the position today.
ACTION: Sell to open GILD 13 Jan (23) 85 put for a net credit of around 0.95 to 1.00 and a 1.1% return.
Philip Morris (PM): 100.10
Philip Morris (PM) and Altria (MO) are two dividend stocks that investors continue to play. Some prefer the riskier MO for their higher yield and lower pay-out ratio while others like PM for the company’s international exposure and potential growth.
We prefer Philip Morris as a “moat” company … with little or no competitive threat and it has better managed the move into “smokeless tobacco” products. Traditionally PM has been a defensive stock to trade and own. It holds its price when the market sells off but doesn’t rally has high when the market takes off.
With an uncertain and challenging 2023 stock market, we will want to continue to count on PM for income. Let’s re-enter the position today.
ACTION: Sell to open PM 20 Jan (23) 99 put for a net credit of around 0.90 to 0.95 and a 0.9% return.
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