| Which stock would I buy for Writing Covered Calls - ZG vs RDFN | |||||
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| DISCLAIMER: This stock comparison is 100% for entertainment. I'm not recommending these stocks as a purchase. The research jump links in this blog post are ones that I use to start my stock investing research. Always do your own due diligence and never risk more money then you are willing to lose. Think of it like this blog post as seeing the world thru my eyes. | |||||
| COVERED CALL SHOWDOWN! - WHICH STOCK WOULD I PURCHASE TO WRITE A COVERED CALL | |||||
| Zillow Group, Inc. | |||||
 | ZG | vs | RDFN |  | |
| Redfin Corporation | |||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| EVERYTHING IN THE FUTURE WILL FIRST BE ATTEMPTED ONLINE - and this is no different than buying a house ... seems everything is going online. Want to buy a car, you go online. Want to go on vacation, online ... the pandemic has accelerated the online world to heights NO ONE thought and the stocks that play in this sandbox are being rewarded. The Real Estate market is no different and in fact, Real Estate companies have had to change its business models to come up to speed ... because online competitors have stepped in to full a need ... the need to do everything online ... and this week's Showdown Stocks pit (2) up and coming stocks in this Real Estate sector ... Zillow (ZG) and Redfin (RDFN). From experience ... people buy houses by going online to sites like Zillow and Redfin to search, find out home values ... RESEARCH! These type companies are disruptors and Wall Street has taken notice ... let's see who wins this Stock Showdown for Writing Covered Calls | |||||
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| NOTE - AT THE TIME OF THIS POSTING, BOTH COMPANIES STOCK PRICES BELOW | |||||
| ZG | RDFN | ||||
| $89.84 | $50.03 | ||||
| Zillow Group, Inc. | Redfin Corporation | ||||
| Just in case you didn't know ... here's some basic company information about what they do. | |||||
| Zillow Group, Inc. operates real estate brands on mobile and the web in the United States. It operates through three segments: Homes; Internet, Media & Technology; and Mortgages. The company's platform offers buying, selling, renting, and financing services for residential real estate. It also provides a suite of marketing software and technology solutions; and advertising services. The company's portfolio of consumer brands consists of Zillow, Zillow Offers, Zillow Home Loans, Trulia, StreetEasy, HotPads, Naked Apartments, and Out East; and business brands for real estate, rental, and mortgage professionals include Mortech, dotloop, Bridge Interactive and New Home Feed. Zillow Group, Inc. was founded in 2004 and is headquartered in Seattle, Washington. | Redfin Corporation operates as a real estate brokerage company in the United States and Canada. The company operates an online real estate marketplace and provides real estate services, including assisting individuals in the purchase or sell of home. It also provides title and settlement services; originates and sells mortgages; and buys and sells homes. The company was formerly known as Appliance Computing Inc. and changed its name to Redfin Corporation in May 2006. Redfin Corporation was incorporated in 2002 and is headquartered in Seattle, Washington. | ||||
| Yahoo Summary-ZG | Yahoo Summary-RDFN | ||||
| #1 - The Golden Rules of Covered Call Writing! | |||||
| The Golden Rules of Covered Call Writing are subjective ... the basic idea is to avoid as much risk as possible when determining a new stock purchase for a Covered Call Write ... we can not avoid risk entirely but using certain rules or guidelines will help use reduce that risk during the timeframe we use the stock for selling premium. I've included the most popular rules or guidelines below which include: avoid a company's earnings report, is the company apart of the S&P 500 or Dow Jones?. Does the company have a dividend? Does the company have same store sales reports? Do you want to own the stock? > This list isn't the end all be all list but a starter list for your research and lowering your risk ... but again, we can not avoid risk . | |||||
| Zillow Group, Inc. | Redfin Corporation | ||||
| S&P 500? | OPTIONS? | DIVIDEND? | S&P 500? | OPTIONS? | DIVIDEND? |
 |  | | | | |
| Confirm | Option Chain-ZG | Verify-ZG | Confirm | Option Chain-RDFN | Verify-RDFN |
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| No surprise here ... new stocks in this space haven't proven themselves YET and will not give dividends and nor will they be placed in the S&P 500 ... Yet! | |||||
| #2 - What story is the chart telling us? | |||||
| When buying stocks to Write Covered Calls the prime objective is for the stock to trade sideways to higher ... selling premium traders will purchase a stock and sell the Out of the Money strike to collect both the premium and the stock appreciation. I always like to look at a chart and ask the question "what story is this chart telling me?" ... if its trending higher, this is good. If its trending lower, well, I really need to do my research if I'm going to invest in a company that its stock is trending lower. | |||||
| See Support-ZG | See Support-RDFN | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| Both charts are screaming BUY BUY BUY ... they have recovered from the March 2020 sell off and in fact are BLOWING UP ... continuing to rally even as I write this blog post. | |||||
| #3 - What are "THEY" saying? | |||||
| I'm not an expert when it comes to whether a stock is undervalued or overvalued or if its a Buy or a Sell ... so I use some great websites to 'paint a picture' for me. Some will have a stock as a Buy and another will have it as a Sell ... so I usually have 3 or 4 different sources to help me. | |||||
| Zillow Group, Inc. | Redfin Corporation | ||||
| Zacks | Yahoo Prem | AmBull | Zacks | Yahoo Prem | AmBull |
| BUY | OVERVALUED | STAY LONG | BUY | OVERVALUED | BUY |
| Corfirm Rating - ZG | Yahoo Summary-ZG | Trending? -ZG | Corfirm Rating - RDFN | Yahoo Summary-RDFN | Trending? -RDFN |
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| BOTH stocks have favorable marks from Zacks ... Yahoo Prem thinks they are OverValued ... I like the Trends here in that Zillow has proven its run and has a STAY LONG vs a new BUY on RDFN ... Im literally splitting hairs here to find a winner. | |||||
| #4 - SHOW ME THE MONEY! | |||||
| Another great visual when quickly trying to determine if this/these are companies we want to own ... remember, we have to own these companies and if the picture isn't telling us a clear picture of a companies prospects then I have to make sure I really do my homework. | |||||
 | |||||
| Yahoo Summary-ZG | Yahoo Summary-RDFN | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| The Financials for this Showdown are the Earnings ... these 2 companies have been BEATING THE LEATHER off the ball and it doesn't look like this will end anytime soon ... with earnings season for these 2 a ways away ... writing covered calls on them MIGHT be clear sailing ... | |||||
| #5 - What kind of Covered Call profits can we make? | |||||
| Giving someone the right but not the obligation to take your shares can be very profitable if done correctly ... typically most Covered Call writers will try to make 3% Cash on Cash profit in a 30 day period. Mastering this skill of selling premium can increase your annual returns vs a buy and hold investment strategy. Below is a (1) deviation Out of the Money Covered Call that one might do if they sell premium. | |||||
| Looking at a 30 day window using (3) deviationS Out of the Money | |||||
| THESE ARE NOT REAL TIME! CLICK LINK BELOW FOR THAT | POSTED > | 9/2/2020 | |||
ZG
| Current Price | Strike Price | LAST TRADE | 30 day return | Expiration |
| $89.84 | $90.00 | $4.53 | 5.22% | 9/18/2020 | |
| $89.84 | $95.00 | $2.63 | 8.67% | 9/18/2020 | |
| $89.84 | $100.00 | $1.81 | 13.32% | 9/18/2020 | |
| THIS IS NOT THE BID OR MID | |||||
| Check this stocks options here > | https://finance.yahoo.com/quote/ZG/options?p=ZG | ||||
| THESE ARE NOT REAL TIME! CLICK LINK BELOW FOR THAT | |||||
RDFN
| Current Price | Strike Price | LAST TRADE | 30 day return | Expiration |
| $50.03 | $50.00 | $2.10 | 4.14% | 9/18/2020 | |
| $50.03 | $55.00 | $0.75 | 11.43% | 9/18/2020 | |
| $50.03 | $60.00 | $0.30 | 20.53% | 9/18/2020 | |
| THIS IS NOT THE BID OR MID | |||||
| Check this stocks options here > | https://finance.yahoo.com/quote/RDFN/options?p=RDFN | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| RDFN is paying serious premiums for a $50 investment ... ZG is paying VERY respectable ones as well ... both would meet my goals for a 30 day trade. | |||||
| #7 - "HURRY HURRY, READ ALL ABOUT IT!" | |||||
| The internet has so many resources for good information on companies ... whether its news, events or just some blogger with a great perspective on a company's prospects ... I love just glancing at the news feeds to get a feel for what's going on with a company I'm researching ... below are some helpful jump links I use. | |||||
| Seeking Alpha | DivChannel | Seeking Alpha | DivChannel | ||
| Alpha Articles Search-ZG | Verify-ZG | Alpha Articles Search-RDFN | Verify-RDFN | ||
| MY WINNER IS!!! | |||||
 | ZG | vs | RDFN | ||
| SCORE | SCORE | ||||
| 6 | 4 | ||||
| Seeing the World Thru my Eyes - the Straight Talk Recap! | |||||
| In a very close race ... Zillow (ZG) takes down Redfin (RDFN) for what I believe is a better stock to use for Covered Call Writing during this timeframe (Sep/Nov2020) but what I'm going to tell you is ... were splitting hairs on this Showdown because BOTH have such HIGH SCORES and either one would play well for a Covered Call WHEEL Strategy or and outright BUY-WRITE CC ... you really have to 'GET' what I'm talkin about with the CHANGE in MINDSET on how people shop these days to get these stocks and understand why they are FLYING HIGHER ... its a change that is REAL ... we bought a place in Oregon 100% online only meeting the realtor and homeowner the day we inspected and signed the paperwork ... and even then the paperwork was 100% DocuSign ... oh yes, have you seen DocuSign stock price? ... so with that said, YOU do your research and decide if either of these fits your risk profile and as always, I wish you the Best in Trading! | |||||
| The BONUS Deeper Dive! | |||||
| #8 - More number that help us Up Our Game! | |||||
| I'm not an expert when it comes to whether a stock is undervalued or overvalued or if its a Buy or a Sell ... so I use some great websites to 'paint a picture' for me. Some will have a stock as a Buy and another will have it as a Sell ... so I usually have 3 or 4 different sources to help me. | |||||
| FFTY | ST50 | S&P 500 | FFTY | ST50 | S&P 500 |
| YES | |||||
| Does either of these companies have Earnings Report (next 30 days) | |||||
| NO | - | NO | |||
| ~ | Nov 05, 2020 - Nov 09, 2020 | ~ | Nov 04, 2020 - Nov 09, 2020 | ||
| Verify-ZG | Verify-RDFN | ||||
| Dividend 2% | EX-DATE | Ave Vol | Dividend 2% | EX-DATE | Ave Vol |
| 0.00% | - | 636,852 | 0.00% | - | 1.431M |
| Verify-ZG | Verify-RDFN | ||||
| What story is the chart telling you? | |||||
| StockCarts | Finviz | BarCharts | StockCarts | Finviz | BarCharts |
 |  |  | | ||
| View Chart-ZG | See Support-ZG | View Chart-ZG | View Chart-RDFN | See Support-RDFN | View Chart-RDFN |
| I hope you enjoyed this Covered Call Stock Showdown blog ... as always you know this is for entertainment and before EVER investing a nickel of your hard earned money you need to do your research or what they call due diligence ... no, nada, zip zilcho stock recommendations were made here ... this ALL should be your STARTING POINT for determining if either of these companies meet your stock investing risk profile. Good luck everyone! | |||||
| Disclaimer - Yes - at the time of this posting I do have a position in this equity. By posting this I am by no means recommending this equity and am not front running for its preformance. I have risked my own money and am accountable for the trade results. | |||||
| Remember, the content of this site is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Please read the full disclaimer posted below and visit cptdashboard.com for my privacy policy. | |||||
| Trading stocks and options have risk. Required reading prior to placing money at risk with options is the ODD which is posted below. "The Characteristics & Risks of Standardized Options" Prior to buying or selling an option, investors must read a copy of the Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD). It explains the characteristics and risks of exchange traded options. | |||||
| - http://www.optionsclearing.com/about/publications/publication-listing.jsp | |||||
| Image credits - stockcharts.com | barchart.com | foolcdn.com | yahoo.com | earningswhispers.com | |||||
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