Postcards: A Full Day of Sports

I learned something today... ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more You are a free subscriber to Postcards from the Florida Republic. To upgrade to paid and receive the daily Republic Risk Letter, [subscribe here](. --------------------------------------------------------------- [Postcards: A Full Day of Sports]( I learned something today... [Garrett {NAME}](floridarepublic) Jul 10 floridarepublic   [READ IN APP](   Market Update: We’re in the green on the overall market as earnings season really kicks off tomorrow. Now is a GREAT time to sell covered calls on positions and take what the market gives you. I’ll break this down today. --------------------------------------------------------------- Dear Fellow Expat: Being a fan of English soccer seems impossible. I pull for England because being a U.S. fan is somehow worse. The U.S. is comically bad in clutch situations. We have many heroic moments, but only because we are supposed to beat teams like Algeria 5-0… [not in the last 20 seconds]( like we did in 2010. The U.S. men’s team choked in Copa America - losing predictably to Panama. I always bet against the U.S. when we play Panama. It’s incredible how bad we are against them. We’ll host the World Cup with Canada and Mexico in two years. Don’t expect much. The reality is that soccer in America is not a “dream sport.” It’s a way for kids to get college scholarships, and we largely recruit our best players from other nations and military bases. Our best athletes don’t play soccer professionally. And if you need proof, watch Odell Beckham, one of the best Wide Receivers in football ever… [put on a soccer clinic](. He made a lot of money in the NFL. He wouldn’t have made as much in soccer. The Jacksonville Jaguars will win the Super Bowl before the U.S. makes the World Cup finals… Anyway, I’m sitting here watching England play the Netherlands, and I can’t say that I have a lot of optimism for the rest of this match. The Dutch have always been a great team to watch… and Robin Van Persie - one of the nation’s greatest players of all time - has what I consider to be the second-greatest goal ever (after Maradona’s Goal of the Century). Just watch this… It’s perfect. Game One I’m heading to the Baltimore Orioles game with my father tonight. He’s had tickets six rows behind the Orioles dugout since Camden Yards opened. It’s my first game of the year. But as we look into earnings season, I want to give you some insight into how to manage this market. Remember, we never want to buy options around earnings. We want to sell them… because options are impacted by volatility expectations and price movement expectations. So, look for names that you own and sell call options on 100 shares or so. Let me give you an example of this. I own 500 shares of Hims and Hers Health (HIMS). I bought this when they announced they were going to start getting into the GLP-1 space. This isn’t a recommendation for the stock… it’s just an example of how I plan to play this stock during options season. I don’t really think that the stock is going to do great this earnings season… BUT…. I can use the volatility to my advantage. So, shares are at $20.12 today. What if I sell a call on HIMS at every price level… $22, $23, $24, and $25? I can sell a call at $22… on August 16, 2024… for $1.85. ($185) I can sell a call at $23… on August 16, 2024… for $1.55. ($155) I can sell a call at $24… on August 16, 2024… for $1.35. ($135) I can sell a call at $25… on August 16, 2024… for $1.10. ($110) I can sell a call at $26… on August 16, 2024… for $0.95. ($95) Now… add that up… that’s $680 in options premium that I can collect today. And if the stock does go over those levels… the option buyer will collect the stock from me. But keep in mind… I’d be selling $2,012 in stock today… for $2,200… $2,300… $2,400… $2,500… and $2,600 if the stock does rip that high due to earnings. And if the stock DOESN’T hit these levels… or just some of them…. I get to keep all that premium. I always remind people… DON’T just sell your stock. Sell a call… let someone take the stock from you… and pay a premium to do it. I could sell calls today on the stock at the $19 level for August 16… at $3.10. This means I’d be exiting with at least a 10% gain from current prices if the stock is called. But if the stock does decline… I get to keep all that money. I’d have downside protection from today… at $17 per share. HIMS is a volatile stock. I am looking to exit right now after I bought it for around $15 per share. But I don’t want to just sell it. I want to be paid to sell it, and covered calls are the way to do it. For more info, you can check out this piece I wrote about Kinder Morgan and covered calls. Stay positive, Garrett {NAME} Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. Under company rules, editors and writers cannot recommend their positions. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.   [Like]( [Comment]( [Restack](   © 2024 Garrett {NAME} 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()