Good morning!

Please not the following CHL adjustment for the Dividend Portfolio and new trade for the LTP:

Yesterday, in our Live Trading Webinar, we talked about some other stocks that were still cheap at the moment.   T was a Top Trade Alert the same day as PFE and it's a lot cheaper now than it was then (a nice way to say we called it wrong) at $26.72 on the day of their earnings.  This is idiotically low and earnings were just OK but the stock is popping to $28 because, as I said in the Webinar, just because a stock is being sold off by idiots doesn't mean it's not a bargain.  Things like earnings tend to balance that out but here's another Top Trade you can still pick up at a good price.

If T is making money, I bet China Mobile (CHL) is making money as they have 950M subscribers and AT&T has around 100M yet T is valued 50% more than CHL, which is trading at 7.6x earnings.  We already have CHL stock in our Dividend Portfolio, because it pays $1.97 (6%) per $32.65 share and we have 1,000 shares so we're going to promise to double down at $30 by selling 10 2023 $30 puts for $5.50.  That would net us into 1,000 more shares at $24.50.

You can just sell the puts for $5,500 to initiate a long position but, in our Long-Term Portfolio, we're going to also buy 30 of the 2023 $27.50 ($6)/35 ($3) bull call spreads for net $3 ($9,000) and that will put us in the $22,500 spread for net $3,500 and we're sure to be able to make that up selling a few calls along the way.  The ordinary margin on the short puts is $1,444 so it's a super-efficient play as well.  If all goes well and CHL is over $35 in Jan, 2023, then the profit on the spread will be $19,000 (542%).

See, there are still things to buy, even in a pandemic economy…