We built our HX Income strategy to help you generate income.

We identify high-quality companies and wait for them to stumble. Once they become too oversold, we dive in to ensure they are still great companies and stocks.

If our research comes back positive, we show you how to make income off the situation!

You can read about our strategy in the HX Income primer here.

With options expiration today, we are going to see income booked on a couple of recent recommendations.

Here are the updates…

Back in November, we recommended selling puts on pharmaceutical giant Eli Lilly and Company (NYSE: LLY)

The company has been a massive winner in the last few years with their leading weight loss drugs.

The stock, however, sold off hard during the most recent quarter as the company gave conservative guidance.

They essentially said they would hold back sales – despite demand – to ensure high customer service. That is a GOOD problem to have and a reason to buy the stock and not sell it.

Accordingly, we recommended selling puts on the stock. Here is a chart of the stock with the date of our recommendation. We also have put the chart of our key technical indicator – the relative strength index or “RSI” – at the bottom of the chart.

On the chart, you can see that the shares have rallied from those levels. Remember that with our income strategy, we don't need them to rally a lot for us to collect our income.

We recommended selling the December 20, 2024, $740 puts in early September. As we said, the stock has rallied, and this puts us in a good position with these puts.

Back in October, we also recommended generating some income from one of leading “picks and shovels” companies in the semiconductor industry – KLAC Corporation (NASDAQ: KLAC).

The company supplies systems to this high growth industry and their product positioning has allowed them show awesome earnings growth over the years. This has also made it an awesome stock.

We recommended selling the November 15, 2024, $660 puts. As we said, the stock has rallied, and this puts us in a good position with these puts. Unfortunately, the stock did not rally before these options expired and we were put the stock.

As always, we didn’t mind because that means we were buying a great business at a great price. In this case – after considering the income from the put sales – we created the stock at an effective price of $630.36.

With the stock trading above that level today, we are going to go ahead and book a small profit.

Earlier in the month, we also recommended selling put options on one of the greatest companies and stocks of all time – The Coca-Cola Company (NYSE: KO).

We are sure you know the company, and it is one of the stocks that has made Warren Buffett one of the world's wealthiest people!

It has continued to be a good stock, but the stock sold off on some weak volume results in the recent quarter.

We have seen this many times before with KO. They report solid numbers and beat estimates, but volumes don’t always come through relative to analysts’ expectations.

Ultimately, though, it is all about the EARNINGS. As long as those come through, the stock will go higher.

Here is the chart of the stock over the last year with the RSI and our entry point…

We recommended selling the December 20 $65 puts and the stock is trading right around those levels.

At this point, it looks like we will "put" the stock and end up owning it. That is not a problem as the stock will have been then “bought” at a price of roughly $63.39 per share – an outstanding price for a company of this quality.