| Which stock would I buy for Writing Covered Calls - AZN vs BMY | |||||
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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 | |||||
| AstraZeneca PLC | |||||
 | AZN | vs | BMY |  | |
| Bristol-Myers Squibb Company | |||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| This weeks 'Stock Showdown' is with AstraZeneca (AZN) and Bristol Myers (BMY) for a couple reasons ... 1) AZN got some bad news today that is Covid vaccine had some less than favorable results BUT Wall Street seems to think those result will come back more favorable and isn't selling off the stock like you'd think considering all the good news on vaccines lately ... 2) BMY being one of my favorites long term buy and holds ... they have similar products to AZN but I feel the Celgene purchase really ups the game for them long term ... so let's see how they fare against each other in this Stock Showdown of some big pharma names | |||||
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| NOTE - AT THE TIME OF THIS POSTING, BOTH COMPANIES STOCK PRICES BELOW | |||||
| AZN | BMY | ||||
| $52.22 | $63.11 | ||||
| AstraZeneca PLC | Bristol-Myers Squibb Company | ||||
| Just in case you didn't know ... here's some basic company information about what they do. | |||||
| AstraZeneca PLC discovers, develops, and commercializes prescription medicines in the areas of oncology, cardiovascular, renal and metabolism, respiratory, autoimmunity, infection, neuroscience, and gastroenterology worldwide. | Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, and markets biopharmaceutical products worldwide. It offers products in hematology, oncology, cardiovascular, and immunology therapeutic classes. | ||||
| Yahoo Summary-AZN | Yahoo Summary-BMY | ||||
| #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 . | |||||
| AstraZeneca PLC | Bristol-Myers Squibb Company | ||||
| S&P 500? | OPTIONS? | DIVIDEND? | S&P 500? | OPTIONS? | DIVIDEND? |
 | | | | | |
| Confirm | Option Chain-AZN | Verify-AZN | Confirm | Option Chain-BMY | Verify-BMY |
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| ALL Green check marks here as these companies are some of the biggest brands in Big Pharma | |||||
| #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-AZN | See Support-BMY | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| Couple things to note ... AZN is trending lower ... and with its recent rally and selloff back to that blue line of support ... it might STILL be too pricey ... but I would say it's less fluffy then prior to hitting resistance ... BMY looks to be testing that long of resistance and should it pop over and stays above ... could mean BMY enters the next level into the 70's ... more of a sideways to higher trade with BMY | |||||
| #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. | |||||
| AstraZeneca PLC | Bristol-Myers Squibb Company | ||||
| Zacks | Yahoo Prem | AmBull | Zacks | Yahoo Prem | AmBull |
| HOLD | OVERVALUED | STAY LONG | HOLD | OVERVALUED | STAY IN CASH |
| Corfirm Rating - AZN | Yahoo Summary-AZN | Trending? -AZN | Corfirm Rating - BMY | Yahoo Summary-BMY | Trending? -BMY |
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| Very interesting American Bull has AZN as a STAY LONG in the short term as its been falling ... BMY on the other hand is a sit and wait ... regardless, these stocks trade in a pretty bankable range with a +/- $5 swings | |||||
| #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-AZN | Yahoo Summary-BMY | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| Clear winner here as BMY keeps Up Ticking with Revs and Earnings ... the little slip from last Q .. its purchase of Celgene ... AZN seems to be driving the business higher as well. | |||||
| #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 > | 11/13/2020 | |||
AZN | Current Price | Strike Price | LAST TRADE | 30 day return | Expiration |
| $52.22 | $52.50 | $1.80 | 3.98% | 12/24/2020 | |
| $52.22 | $53.00 | $1.57 | 4.50% | 12/24/2020 | |
| $52.22 | $53.50 | $1.35 | 5.04% | 12/24/2020 | |
| THIS IS NOT THE BID OR MID | |||||
| Check this stocks options here > | https://finance.yahoo.com/quote/AZN/options?p=AZN | ||||
| THESE ARE NOT REAL TIME! CLICK LINK BELOW FOR THAT | |||||
BMY | Current Price | Strike Price | LAST TRADE | 30 day return | Expiration |
| $63.11 | $64.00 | $0.80 | 2.68% | 12/24/2020 | |
| $63.11 | $65.00 | $0.95 | 4.50% | 12/24/2020 | |
| $63.11 | $66.00 | $0.60 | 5.53% | 12/24/2020 | |
| THIS IS NOT THE BID OR MID | |||||
| Check this stocks options here > | https://finance.yahoo.com/quote/BMY/options?p=BMY | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| NEXT 30 DAYS ... AZN pays a bit more ... the 2 strikes out BMY pays a nice 5.5% ... its clear AZN has better premiums | |||||
| #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-AZN | Verify-AZN | Alpha Articles Search-BMY | Verify-BMY | ||
| MY WINNER IS!!! | |||||
| AZN | vs | BMY |  | ||
| SCORE | SCORE | ||||
| 3 | 4 | ||||
| Seeing the World Thru my Eyes - the Straight Talk Recap! | |||||
| Bristol Myers WINS! this stock showdown largely on the fact that although AZN does offer a nice dividend for investors ... for some reason they do not provide a 4thQ dividend ... so buying the stock now, you would not collect a dividend until February 2021 ... and of course that AZN downward trending chart tells me it might see more lows than highs in the short term ... BMY is clicking and with Rev/Earnings beats ... it's a clear sideways to higher trade and might find itself in the 70 tier soon ... Disclaimer: I own 1,000 shares of BMY but looking at JUST the Stock Showdown markers ... BMY is the clear winner IF you're asking me. | |||||
| 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 |
| - | - |  | - | - | |
| Does either of these companies have Earnings Report (next 30 days) | |||||
| November 3, 2020 | - | November 5, 2020 | |||
| ~ | - | ~ | Feb 04, 2021 - Feb 08, 2021 | ||
| Verify-AZN | Verify-BMY | ||||
| Dividend 2% | EX-DATE | Ave Vol | Dividend 2% | EX-DATE | Ave Vol |
| 2.68% | Aug 13, 2020 | 4.846M | 2.85% | Oct 1, 2020 | 10.673M |
| Verify-AZN | Verify-BMY | ||||
| What story is the chart telling you? | |||||
| StockCarts | Finviz | BarCharts | StockCarts | Finviz | BarCharts |
 |  |  | | ||
| View Chart-AZN | See Support-AZN | View Chart-AZN | View Chart-BMY | See Support-BMY | View Chart-BMY |
| 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 performance. 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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