NKE was our 29th largest position when I analyzed our holdings in my FFJ Portfolio Holdings Review: April 2021 post. Shares are held in a 'Core' account within the FFJ Portfolio. On May 27, 2021, I wrote 5 NKE out-of-the-money covered call options contracts and collected $1.29/share or $645 before fees; I disclosed this trade [...]
I think NKE is a wonderful company. However, the underlying fundamentals and short-term earnings expectations do not support the current valuation. In this Nike options trade review, I explain my thought process as to why I have written out-of-the-money covered calls to generate options income. This options trade is similar to my Mastercard and Visa [...]
Great companies sometimes become grossly overvalued yet we do not want to part with the underlying shares. In such instances, skim additional income with covered calls. Covered Calls A covered call: is a conservative options strategy used to generate income if you think the underlying stock price is unlikely to rise significantly within a specific [...]
My guest NIKE - Currently Unreasonably Valued post at Engineer My Freedom explains why I think the company's share price is overvalued. I also provide examples of a conservative option strategy I use to boost my investment return on my NIKE exposure. I have had several inquiries as to the low dividend yield on some [...]
In recent articles (here and here) I disclosed that I had written covered calls on Chevron Corporation (CVX) and Nike, Inc. (NKE) in an effort to merely skim additional income. The NKE covered calls are working out so far but they expire March 19th and anything can happen between now and expiry (especially [...]
Nike, Inc. (NKE) is a wonderful company. Shares, however, currently appear to be richly valued. I wish to retain my shares in perpetuity, and therefore, am not prepared to sell my shares at a profit, crystalize my gains, and incur the related tax liability. I am, therefore, employing a conservative short-term out-of-the-money covered call option [...]
Despite increased competition Nike, Inc. (NKE) stands to benefit from the growing global middle class. I view NKE as an attractive long-term investment in that it consistently generates strong Free Cash Flow and has a Balance Sheet which reflects minimal Intangible Assets and Goodwill. Summary NKE faces stiff competition but it has demonstrated that [...]
Nike, Inc. (NKE) is a great company in which I intend to hold shares for the long-term. In early February 2019 I wrote out of the money covered calls on the underlying shares I own. Shares have experienced a roller coaster ride subsequent to early February and are now trading a few cents/share above my [...]
Summary In early February 2019 I viewed NKE as expensive and wrote April 2019 $87.50 covered calls. NKE released strong Q3 results after the March 21st market close but results disappointed investors and its share price pulled back over 6.50% on March 22nd from the previous day’s ~$88 close. I view NKE as a solid [...]
Nike is a great company to hold in a well diversified portfolio. The challenge at this stage is that its valuation appears to be somewhat lofty based on earnings projections and taking into account its recently announced 4 year $15B stock repurchase program. I will not be adding to my current position at current levels. [...]
