Monday 9/28/20: MKC, PEP, AAPL

Hi everyone,

I hope you had a great weekend. These are my trade ideas for tomorrow:

• “McCormick & Company, Incorporated MKC is likely to register an increase in the top and bottom lines when it reports third-quarter fiscal 2020 numbers on Sep 29, before market open […] McCormick’s Consumer Business segment sales have been benefiting from higher demand stemming from at-home consumption and cooking more at home amid the coronavirus outbreak. In the last earnings call, the company stated that it anticipates an overall increase in consumer demand in this segment during periods of elevated at-home cooking” [Zacks Equity Research].

  MKC should continue to see positive momentum prior to earnings tomorrow. The news coverage on the stock is largely positive and retail traders should place their final bets.

  —> I am looking into 10/16 at the money calls at market open tomorrow that could be flipped same day before close.

• PepsiCo, Inc. PEP will report on Thursday before market open. I am also expecting a continued earnings run-up similar to MKC. Pepsi should receive a lot of positive news coverage (e.g. strength of its Frito-Lay snack business) this week since its the first large cap stock reporting this quarter. Additionally, PEP might be perceived as a safe value stock by retail investors who might be scared of a continued tech sell-off.

  —> I am looking at 10/16 OTM calls at market open tomorrow morning. These should be secured prior to earnings release as well.

• AAPL: I am potentially looking into November OTM calls <$120 expecting a premium increase ahead of the expected 5G iPhone release event in mid October. “Our best educated guess for the iPhone 12 announcement is either Oct. 13 or 14” [CNET].

• Hedging: QQQ October puts to balance positions in case the overall market continues to show weakness due to election uncertainty and stalled stimulus talks.

Enjoy the rest of your Sunday!

PS: Please share our newsletter with friends and family.

I am using this newsletter as my personal financial diary. This not financial advise. All opinions expressed in this newsletter are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.