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.
When our research returns 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 will see income booked on a couple of recent recommendations.
Here are the updates…
Our first recommendation in January was to sell puts in wholesale retail powerhouse Costco Warehouse Corporation (NASDAQ: COST).
The company is the third largest retailer on Earth and also has really cheap hot dogs!
The company also has had a great track in recent years with earnings growth, beating numbers and rising estimates.
The stock hit a new all-time high in early December but sold off steeply into the end of the year.
What was going on?
As we said at the time of our recommendation, there was nothing.
It simply sold off from a very overbought position during the stock market sell-off we saw at the start of 2025.
Here is the stock price chart and where we recommended selling puts for income. We also have set 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 to new highs since our recommendation.
We recommended selling the February 21, 2025, $915 puts in early December. As we said, the stock has rallied, putting us in a good position with these puts.
ACTION TO TAKE: With the stock trading above $1000 per share today, those options will expire worthless today, and you can keep the income!
Later in the month we also recommended shares of the largest company in the world – Apple Inc. (NASDAQ: AAPL).
We are sure you are familiar with THIS company and know it has been one of the greatest stocks of all time!
Below is the stock price chart along with the RSI over the recent period…
On the chart, we have highlighted in green where we said to sell the puts to generate income.
The stock had a huge move into year-end 2024, and we thought the sell-off was the "hangover" effect from that rally.
With the stock deeply oversold, we were confident that the shares would bounce back. That is precisely what happened, and the stock is now back near the old highs.
We recommended selling the February 2025 $215 puts and collecting the income.
ACTION TO TAKE: With the stock trading above $245 per share today, those options will expire worthless today, and you can keep the income!
