| Which stock would I buy for Writing Covered Calls - PG vs MMM | |||||
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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 | |||||
| The Procter & Gamble Company | |||||
 | PG | vs | MMM |  | |
| 3M Company | |||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| In this 'Stock Showdown' we’re highlighting two companies that are household names and have products used around the world. Procter & Gamble and 3M are great S&P 500 companies and both pay a very handsome dividend as these two companies are profitable and most everyone agrees they should be staples in anyones long term buy & hold portfolio ... but what about the next 30 days for a Covered Call? | |||||
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| NOTE - AT THE TIME OF THIS POSTING, BOTH COMPANIES STOCK PRICES BELOW | |||||
| PG | MMM | ||||
| $142.23 | $197.94 | ||||
| The Procter & Gamble Company | 3M Company | ||||
| Just in case you didn't know ... here's some basic company information about what they do. | |||||
| The Procter & Gamble Company provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. It operates in five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. The Beauty segment offers conditioners, shampoos, styling aids, and treatments; and antiperspirants and deodorants, personal cleansing, and skin care products under the Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, SK-II, and Secret brands. .. | 3M Company develops, manufactures, and markets various products worldwide. It operates through four business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. The Safety and Industrial segment offers personal safety products, industrial adhesives and tapes, abrasives, closure and masking systems, electrical markets, automotive aftermarket, and roofing granules to industrial, electrical, and safety markets. The Transportation and Electronics provides electronics, such as display materials and systems, electronic materials solutions; automotive and aerospace, and commercial solutions; advanced materials; and transportation safety products ... | ||||
| Yahoo Summary-PG | Yahoo Summary-MMM | ||||
| #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 . | |||||
| The Procter & Gamble Company | 3M Company | ||||
| S&P 500? | OPTIONS? | DIVIDEND? | S&P 500? | OPTIONS? | DIVIDEND? |
 | | | | | |
| Confirm | Option Chain-PG | Verify-PG | Confirm | Option Chain-MMM | Verify-MMM |
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| Both of these companies are large S&P type companies ... they have weekly options and they pay very nice dividends ... I'm a fan of MMM's very large quarterly $1.48 dividend .. but PG's 0.87 cent dividend its that bad either. | |||||
| #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-PG | See Support-MMM | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| With earnings behind Procter & Gamble it looks like it’s breaking out to the UPside and with no earnings for three months and it having no company events such as an EX-Dividend date it might be a good time to buy shares and sell the out of the money Covered Call. 3M on the other hand, has earnings and an EX-Date coming the stock has been trading sideways and trending a bit lower I really like Procter & Gamble for the next 30 days | |||||
| #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. | |||||
| The Procter & Gamble Company | 3M Company | ||||
| Zacks | Yahoo Prem | AmBull | Zacks | Yahoo Prem | AmBull |
| SELL | OVERVALUED | STAY LONG | HOLD | FAIRVALUED | STAY SHORT |
| Corfirm Rating - PG | Yahoo Summary-PG | Trending? -AZN | Corfirm Rating - MMM | Yahoo Summary-MMM | Trending? -MMM |
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| Procter & Gamble had decent earnings in the stock is moving higher ... I see the Zacks rating changing from seller by 3M is fair value in trading sideways nothing special but if you were looking to collect it’s large dividend it’s EX-Date is coming very soon something to keep an ion for a Covered Call + Dividend Capture play trade. | |||||
| #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-PG | Yahoo Summary-MMM | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| I’m actually surprised to find that Procter & Gamble is a larger company than 3M in fact it’s almost double the size of 3M so there’s no doubt Procter & Gamble wins this one and they look more profitable | |||||
| #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 > | 7/30/2021 | |||
PG | Current Price | Strike Price | LAST TRADE | 30 day return | Expiration |
| $142.23 | $143.00 | $1.95 | 1.91% | 8/27/2021 | |
| $142.23 | $144.00 | $1.50 | 2.30% | 8/27/2021 | |
| $142.23 | $145.00 | $1.11 | 2.73% | 8/27/2021 | |
| THIS IS NOT THE BID OR MID | |||||
| Check this stocks options here > | https://finance.yahoo.com/quote/PG/options?p=PG | ||||
| THESE ARE NOT REAL TIME! CLICK LINK BELOW FOR THAT | |||||
MMM | Current Price | Strike Price | LAST TRADE | 30 day return | Expiration |
| $197.94 | $200.00 | $2.25 | 2.18% | 8/27/2021 | |
| $197.94 | $205.00 | $0.96 | 4.05% | 8/27/2021 | |
| $197.94 | $210.00 | $0.42 | 6.30% | 8/27/2021 | |
| THIS IS NOT THE BID OR MID | |||||
| Check this stocks options here > | https://finance.yahoo.com/quote/MMM/options?p=MMM | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| With the stocks being low implied volatility stocks you’re not gonna get that much for a 30 day Covered Call however I do like 3M's 4% for the $205 strike and there’s a chance you might be able to pick up that dividend as that would add to this Covered Call premium | |||||
| #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-PG | Verify-PG | Alpha Articles Search-MMM | Verify-MMM | ||
| MY WINNER IS!!! | |||||
| PG | vs | MMM |  | ||
| SCORE | SCORE | ||||
| 5 | 3 | ||||
| Seeing the World Thru my Eyes - the Straight Talk Recap! | |||||
| Procter WINS! PG is showing that its going to breakout of its current range of $138 - $142 and might start trading in the $150's ... with no earnings, no ex-date ... this would be a easy swinging 30 day CCW for one of this 'classic 3% monthly trades' ... MMM's earnings and Ex-Date adds excitement for me because I've used 3M for many CCW+DIV Capture trades and might consider doing another ... but today PG takes this 'Stock Showdown' for me ... Disclaimer: I own 500 shares of PG | |||||
| 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) | |||||
| June 18, 2021 | - | July 18, 2021 | |||
| ~ | Jul 30, 2021 - Jul 30, 2021 | ~ | Oct 26, 2021 - Oct 26, 2021 | ||
| Verify-PG | Verify-MMM | ||||
| Dividend 2% | EX-DATE | Ave Vol | Dividend 2% | EX-DATE | Ave Vol |
| 2.22% | Jul 22, 2021 | 8.43M | 2.98% | May 20, 2021 | 2.159M |
| Verify-PG | Verify-MMM | ||||
| What story is the chart telling you? | |||||
| StockCarts | Finviz | BarCharts | StockCarts | Finviz | BarCharts |
 |  |  | | ||
| View Chart-PG | See Support-PG | View Chart-PG | View Chart-MMM | See Support-MMM | View Chart-MMM |
| 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. | |||||
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