Trading KR, AAP, M, STX, MET, M, COTY, WBA, CSCO – 20102017

Written by schattenmann

A put option on KR and a covered call on M were bought back with profits. Retail business has a lot of challenges and the amazoning moment is going on and on. Nevertheless Amazon won’t kill all business around the world. Both Companies had major losses in the past and were overvalued a lot. M and KR are making efforts to change the business, especially their online business and are undvervalued now. M has a Dividend yield of over 7% now and trading at P/E under 7. If numbers do not change (or improve) there can be a boost to the upside. KR is trading @ 10-12 P/E in reference to their earnings, which is a much better valuation than the broader market.

AAP is a loosing position and still within the parameters but under heavy review. I cut my losses short and realized half of my losses by closing 50 % of my existing position. It is the sindgle hardest lesson a trader has to learn: cutting losses short! As i get older in this business i have less problems to take my losses. I understood that this is part of the game and a very essential one.

STX and MET were bought back with profits. I am owning STX and will watch retracements to buy more ore to sell options. MET i do not own but want to sell more options next week @ 45 levels which is >14 % out of the money for now. I am interested to buy in MET @ 45 levels or so, if it ever comes to there.

WBA i sold another put @ 55 levels. The healthcare sector is facing some challenges and WBA as well. This stock was overvalued a lot in 2015, but finding now value. A beldended P/E of 13-16 in reference to earning numbers and a dividend yield of 2,4% are not that bad for todays valuation metrics. I do not own this stock but would like to buy it @ 55-65 levels.

M which made a good move up today, was a covered call which has been bought back with profit before todays move.

Coty is a little loss i am taking off the table. There is no specific reason for that, but i wanna reduce the numbers of shares i am holding for now.

As mentioned above i have sold a put @ 45 on MET again. I am still interested to buy this stock at that level.

CSCO was bought back with profit and having options with APR expiration in the market. I do not renew this option for now because you get to less premium after this week’s move.

The general market is closing @ ATHs, amazing und irrational again. Valuation going higher and higher and the party (seems) to go on. Everybody knows that the bull market is mature and we are wondering who is buying? I  am on the longside and holding my better longs, reducing my losses and keeping myself hedged with a net long portfolio for now. This week we had a couple of days with high OEX-PCR values, which may be is signaling that the smart money is hedging, but we had such signs over the past months again and again. The market is going up the wall of worry and this week is closing as a super bullish bar again. Time will tell the story.

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