Further to my August 17th Chevron Corporation (CVX) article, I have acquired another 300 shares for one of the 'side accounts' within the FFJ Portfolio.
In my FFJ Portfolio - August 2019 Report I mentioned that due to my aging mother's health issues I had to go out of town August 18 - 28 and had not acted on my August 17th disclosure that I would be acquiring additional Chevron Corporation (CVX) shares.
With CVX shares now trading at pennies above $115 and my need to once again go out of town September 8th for an indefinite period to find new living arrangements for my mother, I decided to acquire 300 shares on September 3, 2019 for one of the 'side accounts' within the FFJ Portfolio. Regretably, these shares are not eligible to receive the $1.19/share dividend to be paid September 10, 2019.
In addition to the CVX shares I have just acquired, another 1244 CVX shares are currently held in two different 'core accounts' within the FFJ Portfolio. In April 2019 I wrote $130 and $135 covered calls which expire September 20th. I am of the opinion CVX's share price will remain below these strike prices and these option contracts will expire worthless meaning I retain the underlying shares AND 100% of the option premium (~$3170) I collected when I wrote the contracts.
I am cautiously optimistic that a long overdue broad market pullback is almost upon us which will provide investors with an opportunity to acquire shares in high quality companies at far more reasonable valuations than we have witnessed in recent months. I appreciate that it is entirely possible CVX's share price could get caught up in such a pullback but when I recently analyzed CVX I came to the conclusion that ~$115/share was 'fair'.
I continue to monitor several companies with the hope that their share price retraces to a level wherein their respective valuation becomes enticing. I am prepared to deploy funds and will provide an update on my activity at the earliest opportunity.
I wish you much success on your journey to financial freedom.
Thanks for reading!
Note: I sincerely appreciate the time you took to read this article. Please send any feedback, corrections, or questions to [email protected].
Disclaimer: I have no knowledge of your individual circumstances and am not providing individualized advice or recommendations. I encourage you not to make any investment decision without conducting your own research and due diligence. You should also consult your financial advisor about your specific situation.
Disclosure: I am long CVX.
I wrote this article myself and it expresses my own opinions. I am not receiving compensation for it and have no business relationship with any company whose stock is mentioned in this article.