Transcription
I'm actively buying five stocks right now. In fact, tomorrow I'm buying 90K worth of one of those stocks, and I'm going to dive into the exact trade I'm making. I'm going to talk about their financials and exactly why I'm investing so heavily in this company, and we're also going to talk about the market. So, let's go ahead and jump into it.
Remember, this is not financial advice. This is just me sharing what I'm personally doing for educational purposes only. Results may vary.
Now, let's take a look at the portfolio. As we could see, I hit a new all-time high in the portfolio. And if you want to follow me on my journey to hit my 8-figure goal, make sure to be subscribed by clicking that subscribe button down below. And let's go ahead and jump into it. I do want to jump into the realized gain/loss for educational purposes to show you documentation of this journey. So, as you can see, year-to-date, I'll refresh this right now. Year-to-date, we are at 272K. Obviously, results vary year-to-year, but this is where we currently stand with the portfolio. Um, a little over 20%, and you know, I'm hitting my goals so far.
So, uh, also, I'm not the only one doing it. If you take a look here in Options Trading University, this is my private mastermind group. We have clients sharing their inspiration here. As you could see, um, yesterday, you know, Chad posted his inspiration here. Raymond posted his inspiration here. He's a newer client. Tom here with some inspiration as well. Uh, obviously, results vary based off of portfolio size and risk tolerance, but it's, you know, I'm glad to see everyone winning here on a day-to-day basis, sharing their inspiration.
So, um, if you want access to this, you want access to my trades and my leaps, entries, and exits channel, that'll be at the top of the description. Um, also, I do give away free trade ideas here on my Instagram and my free newsletter. In fact, I'm giving one away today. So, make sure to be subscribed to those. Those are also down in the description below. But let's go ahead and jump into it.
As you can see here on the CME Fed Watch tool, this is exactly what I look at every week to make sure we are getting interest rate cuts. This changed quite drastically this week. Odds of a September rate cut, 25 basis point rate cut is coming in September. The odds are 93%. And this tool right here has been right 100% of the time going into a Fed meeting if the percentage is 55% or higher. So, it looks like we're getting a September rate cut, but we do also have next week core CPI coming out. Core CPI, core inflation data. This is basically what is going to determine if the Fed is going to cut, you know, 25 basis points or maybe even 50 basis points. So, we may be even getting a bigger cut on the way if inflation data comes in good at the 2% mark or maybe even below 2%. So, next week is also going to be a big week for the markets.
Now, if we jump into QQQ, this tracks the NASDAQ 100. This is my favorite ETF to look at. And we can see that QQQ is now rebounding off of that dip that we had, you know, last Friday. Okay, so like I said, when that dip happened, I believe that that was going to be kind of a short-lived situation. And of course, buyers stepped in, took advantage of many stocks at discounts, and now the market seems to be headed back up. I do think that, you know, QQQ in the next couple weeks is probably going to be a little bit range-bound, but then I think we're going to shoot up on low volume um up to this 585 area. Okay, so this could happen in the next couple weeks. That's pretty much what I'm expecting here. Expecting some consolidation, some digestion, which is good for the markets. It's going to be light volume. you know, everyone's on vacation. Um, this tends to be kind of a slower part of the month, especially in the summer, but I think we could hit 585 on QQQ.
Now, if we take a look at the VIX, which is the fear and volatility index, this helps me determine how much cash that I need to have deployed or sitting on the sidelines. Right now, the VIX fell, okay, from a high last week on Friday when there was a lot of fear in the market, VIX went to 21. This thing is now down at 16.76. So I think that this thing will be headed down to that 15 level, and then once we break 15, I think we're going to be headed to the 14s, maybe even the 13s, which we haven't seen in quite a while. Maybe it's been, yeah, probably more than a year. Okay, it's been over a year. So I think we're going to hit those levels of extreme confidence and greed, and the market will be at all-time highs. And and you know what that tells me is that I need more cash on the sidelines.
So let's go over my VIX cash allocation levels. As you can see, we're sitting right here between VIX 15 and 20, but we're on the lower end of this. So essentially, I could have 60 to 80% allocated or 20 to 40% of cash on the sidelines. Right now, I am pretty cash-light. Okay? So I have about 10% cash because I'm very aggressive, and I do believe the market is going higher from here. So, with that being said, just giving you an update on kind of where I'm at with my cash, but obviously, I'm more aggressive than others. Uh, but this is definitely helpful to look at, you know, it just to be ready for any market dip. But we just had a dip. It got bought up. So, I don't expect one for at least the next three to four weeks.
Now, let's dive into the five stocks that I'm buying right now actively. And then the fifth one, we're actually going to go into because that is the fifth stock that I'm adding tomorrow. Um, 90K worth. So let's go ahead and dive into it.
The very first stock is going to be Meta. Okay. Meta came in with absolutely phenomenal earnings. All right. Their PE ratio is trading at a 27, which that's exactly what it was at prior to earnings. So yes, the stock price went up quite a bit, I think 12% from down here, but the PE ratio stayed the same. meaning they are earning much more per share than they were prior to this um earnings announcement. Okay, so this company I believe is going to be the first company to create artificial general intelligence. They are Mark Zuckerberg. I wouldn't put it past him. He is ramping up the AI team and getting all of the right players on board to really expand not only their advertising of this company but creating something that who knows what it will lead into. So, um I always like, you know, investing in these advertising companies because businesses need to advertise, and with interest rates coming down, businesses are more prone to borrowing debt and spending that money on advertising to grow the business. So, these companies perform well, especially when interest rates start coming down.
So Meta is one that I'm actively getting into, and I'm going to show you how I'm playing it pretty safe because I'm not buying at these particular levels, but rather I'm selling a cash-secured put that is a little bit lower than where the stock is trading. So I'm selling something, you know, in the 740s or 750s so that I get to collect premium income right on a monthly basis for selling that cash-secured put. But then if the stock does fall down there, I will get assigned 100 shares of the stock at a discount. So it's basically this strategy that I use is like dollar-cost averaging, but I'm getting paid to do it. Okay? So I'm going to show you exactly what I'm doing. Remember, this is not financial advice. I'm just sharing what I'm personally doing for educational purposes. Results may vary, but if we go into the portfolio, as you can see, 108K on the sidelines. So we're, you know, little actually a little under 10% of cash right now. So, we barely have any cash because um, you know, I'm pretty bullish on the markets. But if we go into Meta, you could see the current position. I upped it today. I sold a 745 put uh up the position. It's currently the largest position in the portfolio, 149K in cash-secured puts.
So, let's talk about exactly what I did here. So, we're going to go to the options chain. What I did was I said, "Hey, you know, I want to generate some premium, more premium for August." Yes, it's only 23 days out, shorter than a typical expiration that I would go. Usually I go 30 to 35 days out, but I went 23 days out. Okay. And I went to this 745 strike. So in 23 days, I'm picking up about 1.34%. Obviously, results vary, the numbers aren't guaranteed because this stock fluctuates. But um, you know, on my current puts, I picked up about actually $1,145 versus what it says right now, which is $970. Okay. So I picked up 1145, which is closer to 1.5%. Um, and you know, I feel comfortable at that level because if the stock does come down, all right, and we'll just draw it out. Okay. If the stock does come down to 745, right, that'll be down here. Okay. And basically, I would be getting a decent discount from current prices. I'd be getting, you know, a 3.5% discount from current prices. And from all-time highs, I'd be getting a 5% discount on the stock if it does close below that level by expiration at expiration. Okay? Um, if it doesn't, then I collect that premium and I get to do it all over again. And I'll just keep riding this stock up, selling cash-secured puts a little higher, a little higher, a little higher to collect, you know, two to potentially even 3% on a good month um on Meta. Okay, now that is exactly what I'm doing on Meta. I'm fine getting assigned there. Love the stock long-term. If you zoom out on this stock, very predictable, and I do believe that it's going much higher, probably into the mid-800s by the end of the year. Okay, so that's my thesis on Meta.
Now, let's go ahead and go into the second stock, which is Apple. Apple had a nice run-up today. About a 5% candle here, kind of hitting this um lower trend line. Okay. Um 5% up on the day, and it's been kind of trading in this range for quite a while. But what I like about this stock is that, you know, it's one of the largest stocks in the S&P 500, but it's down pretty significantly still from its all-time highs. It's down about 18% still, while a lot of other stocks like even in the MAG 7 like Meta and um, you know, Nvidia and stocks like that are already making all-time highs versus this stock has been pretty beat up, and it's a staple in the household, right? Everyone has an Apple product of some sort. um if they don't, then it's a very small percentage, right? So I use Apple products, I understand the company. 32 PE ratio. PE ratio is pretty low here, and I do believe that this stock will reclaim the 240s to 250s. It'll reclaim this range, okay, um probably by end of the year, okay? It's a slow mover but very predictable and easier to play.
So I'm going to show you exactly how I'm playing it in the portfolio. We're going to go to positions, we'll go to Apple. As you can see, currently I have about 62K worth of cash-secured puts. I do plan on upping this a little bit once these puts expire um on Friday, right, to collect this full 738. But uh I sold a 210 put to collect 394 and you know, 23 days out, and I felt good there. Okay, so I went right at the money. I'm going to show you exactly what I did, but typically I'd go out, you know, to next month. I'd probably go out to September 12th. That's like more of a normal 30 to 35 days, somewhere in that range. Let's just go to September 5th, right? And I would go right at the money. I'm comfortable at 210. If I believe this stock is going to 240, right? Uh, and I just want to collect premium. Okay, cool. I'll sell the 210, collect 475, which is 2.35% ROI. Results are results vary. It's not guaranteed because this number fluctuates as the stock fluctuates, but I feel comfortable at this strike getting assigned. So, I like that on a super blue chip, you know, safer stock, less volatile stock in the portfolio, okay? 2.35% ROI versus some of the others that get my ROI up to closer to 3 to 5% a month because, you know, those stocks are a little bit more volatile like Palantir, Robin Hood, SoFi, okay, but I like having these stocks in the portfolio too. So, that one is a good strike. I feel good there. And I really like Apple. All right, that's stock number two.
Stock number three is Amazon. Had a very nice pop-up today. So, congrats to anyone who bought that dip. That was wonderful. I'm actively buying this stock because I actually got assigned shares. So, I'm going to show you what I'm doing right now. Um, you know, we're trading at 3 or 222, and I think this stock will reclaim all-time highs uh in the next couple months. Okay? I think it's going to reclaim 242 in probably the next two months. It's not far-fetched because Amazon is a wonderful company. PE ratio 33, and they're going to have, you know, drastic uh effects from the AI revolution as far as humanoid robots and implementing that into the logistics play of their company. So, um, very bullish on Amazon.
If we go into the portfolio, you could see I got assigned about 86K worth of shares, and I have about 11K worth of cash-secured puts. Okay. So, um, we'll take a look at this. I have one, two puts at the 215 strike. Okay. And then I have some covered calls at my co well, one, two of them are above my cost basis, 222.5, and I got assigned shares at 225, and I have some covered calls at my cost basis collecting some premiums there. So I have some shares, and they might get called away because I didn't expect Amazon to run up so fast. But that's fine if they do, then I will go ahead and sell some cash-secured puts to get back in. But if I were to sell more cash-secured puts today, I'd probably go out to September 5th, okay? And I would go probably right at the money. I'd go, you know, 40 delta. If you want to, if I wanted to be safer, I'd go 30 delta. I'd collect one and a half percent, which is definitely a lower ROI, but um, you know, it's a safer stock, but I I like the 220 strike, just getting more aggressive in anticipation of Amazon going to 240. And I'd collect 2.31% in 30 days. Now again, results aren't guaranteed, these numbers fluctuate. Okay, so that is a pretty safe strike in my eyes at that level. All right, the fourth stock is SoFi.
I think right now, while this stock is trading in consolidation, it has the potential to go to 25. It's already hit that level. Okay, so it has potential to get there in the next couple months. So right now, while it's consolidating, I think this is a good time to sell cash-secured puts or even buy the stock or even on a pullback buy some leaps. Okay. So this is a great stock right here. And what I'm currently doing is we go to the position. I have about 139K in cash-secured puts, 22.5 puts that are most likely going to get assigned in 23 days unless this thing pops up past that. So, I already am going to get some shares, and I'm getting paid about 2,900 to to dollar-cost average into those shares. Um, but I also have the 19.5s and the 21s. So, right now, if I had wanted to put on a brand new position, I'd go September 5th, and I would probably go out to the 20s. That's a very kind of safe strike right there for 3.36% ROI. Results aren't guaranteed, numbers fluctuate, but it definitely meets my return target for the month. So, I like that strike, the 20 strike. So, I like that strike, the 20 strike. And if we go back to the chart, um, 20 would be about right here. Okay. So, you're getting you're getting below these highs that were made, well below. Okay. Um, and if from all-time highs, you're getting about a 20% discount if the stock falls down there. And I got assigned. Okay. So, that's a wonderful strike, very safe below this lower Bollinger band. Um, so I'm really liking that, and it looks like the selling pressure is subsiding right now on SoFi.
Now, let's go ahead and get into the fifth stock, which I am purchasing 90K worth tomorrow. We have DoorDash. DoorDash had great earnings today. Um, post-earnings. Okay, the stock is up 6% and it's still climbing. Okay, why is this stock performing so well? It has a PE ratio that's really high, 333. So, it's not a cheap stock regarding valuations. But why is it trading so high? Okay, why is this company overvalued and why do why do investors keep pouring into it? Well, if we just look at their um quarterly earnings, which we're going to dive into in just a moment, but I want you to look at um, you know, just this last quarter, okay, 4.7 billion in cash and look at their debt, just 500 million. Okay, so they can pay off their debts like almost 10 times over. They have plenty of cash on hand to expand. And that's exactly what they're doing.
So, if we look at their most recent earnings, Q2 earnings, okay, um, total orders increased 20% year-over-year, double-digit growth, okay, 761 million orders. Revenue increased 25% year-over-year to 3.3 billion with net revenue margin of 13.5%, up from 13.3. So, the company is still in growth phase, double-digit growth phase. Okay. Uh, adjusted EBITDA increased 52% year-over-year to 655 million from 430 million last year Q2. All right, so that alone is crazy, right? And they're expanding. They're expanding. They're spending some of that free cash flow on acquisition in the international markets. I believe they just purchased Deliveroo, which um they are they said is probably going to close at the end of the year. So yeah, they said right here, "Our outlook and expectations for stock-based compensation expense and depreciation do not include any potential impact from our proposed acquisition from Deliveroo. We continue to expect our proposed acquisition of Deliveroo to close during Q4 2025," and they think that this is going to impact the stock in a positive way with, you know, massive earnings coming from that expanding to the international market. So that's what I like to see.
So, free cash flow, if we go there, free cash flow of 355 million, down from 530 million and 451 million respectively. Okay, but the free cash flow was negatively impacted by timing of working capital, which we expect to benefit free cash flow in the second half of 2025. So, still massive amounts of free cash flow, but they're investing some of those profits into acquisitions, right? So that is going to benefit the stock in the future. And I believe that was the Deliveroo. That's kind of why the free cash flow went down a bit because they acquired um Deliveroo. Okay. So, wonderful company.
If we look at their current assets, all right, what I like to see, cash and equivalents this quarter $3.9 billion. Their liabilities 1.6. Okay. So, tons of cash. That's what we want to see on a company that, you know, really wouldn't be affected by any type of black swan as far as a COVID type situation, right? Everyone. This is actually how I discovered DoorDash was when COVID happened, right? So, I actually use DoorDash. I have a DoorDash pass which I pay for on a subscription basis. That's why I love the company so much because they have a recurring revenue, and they are needed, and they're growing, right? People that are busy working that don't have time to spend 30 minutes driving or an hour driving rather 30 minutes there, 30 minutes back, plus 30 minutes of shopping at the grocery store or ordering some food, that's an hour and a half saved, and a lot of people that don't have that time, they rather spend the money like me on this service. High quality, gets to your door fast, delivered the food you like, and uh, I see this company growing. I see this company becoming a trillion-dollar company. So, just, you know, just wait and see. Um, right now, it's currently at 109 billion market cap, but with the economy growing the way it is, everyone working from home, um, people not having as much time, and they're spending so much time on work, this company serves that need. It is a logistics company. It is clearing up so much time and freedom for people, and that's why I love the company.
So, I am um going to be adding more. If we go into the positions, I added more this week. Okay, so I played earnings obviously um put 90K on the line in cash-secured puts to collect 2K in premiums. These will all be at 100% um so I can close these out tomorrow and put on brand new positions. Now, the options chain is probably not going to be updated, but I'm probably going to go out to next month, 37 days out, maybe even September 19th, but we'll just go to September 12th, and I'm probably going to place somewhere in the 250 to 260 range. If we go to the stock, right, I'm going to try to get in. Um, it would be nice to grab the stock kind of at previous all-time highs, which is 258. So, if I could sell some cash-secured puts slightly below that, maybe at 255, right, while the stock is all the way up here, that would be great. Okay, so I'm going to probably go 30 delta. Um, that would give me a 7.5% discount if the stock did fall. But I do feel safe around the 255, 260 area. So, we'll see tomorrow. But I am going going to add 90K worth or even more um potentially on those cash-secured puts. So, loving the company. They're doing well. They're growing, and that's the type of companies I want to be in.
So if you enjoyed this video, please give it a thumbs up. I'll see you in the next one and take.