I just bought 10 contracts of the Walmart (WMT) long term (LEAPS) options.
Walmart is a great company and I’ve owned shares since 2017. WMT will be part of my new section, Wealth Builder. Once I get the section completed I’ll be writing about the stock.
My Wealth Builder will have 3 portfolios. 2 will hold stock positions, and the other will hold LEAPS positions. The LEAPS I just bought on Walmart will be in my Stock Alternative Portfolio. I bought these 10 contracts with an Expiration Date of 1/21/22. I plan on holding this position for at least a year. With the stock market anything can happen, but that’s my plan.
Buy to Open 10 WMT 1/21/22 $120.00 C @ $13.50 ($13,500)
Before I make my Wealth Builder public I’ll be writing a page called Alternative Covered Calls. This is actually a new strategy I’ll be doing. Most Covered Calls are when you buy a stock and write a Call against it. This is done as a hedge, or just to bring in extra money while you’re holding the stock. My Alternative Covered Call is when you use a LEAPS option as an alternative to buying a stock. You cover the Call with the “right” to buy the stock instead of buying the stock. My new page will explain this strategy completely.
I bought this WMT LEAPS as an investment, but also to cover Calls I’ll be selling on WMT. When I bought the LEAPS the stock was at $118.80. As I write the stock is up a little to $119.15. I feel WMT will be moving higher with the shopping season.
Watch for the “Wealth Builder” section and my page “Alternative Covered Calls.” Also I’ll be selling a Call against my new WMT LEAPS.
Successful trading,
Steve
The Options Coach