Our strategy is to be accumulating assets and then monetize those positions by selling options around them. We are constantly looking for good quality stocks that pay dividends (but also growth stocks), have decent dividends that are safe and growing, and can be optionable. And that is why we are adding two new stocks to our watchlist (JXN, CVS):
Upon reviewing a few stocks, I am adding Jackson Financial Inc. (JXN) to our watch list and start accumulating the stock. Our calculated fair value is $344.98 and the stock is trading at $45.38, so there is a huge potential for a 104% annualized return by 2025. Note the stock may stay below the fair value for years, so do not immediately assume it will skyrocket from $45 to $344 in two years (though it may, because anything can happen).
Our second addition to the watchlist and potential accumulation is CVS Health Corporation (CVS). That’s a good old health services provider, so nothing new and spectacular. What is interesting about this stock today is that it is also trading below its fair value ($150.29 a share), providing a potential for a 23% annualized return in two years, started growing the dividend again, and has rapidly growing revenue. The only concern is the debt which is quite high but the company started decreasing it.
The technical analysis of these stocks will be also added to our Newsletter.
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