Is This A "Top" For Home Improvement Stores? Tue, Aug 14, 2018

When It Rains...

This is a Post from the Symbol Surfing Blog from Thu, Jul 26, 2018.

So today was a little rough.

Two stocks I own got hit...hard.

Mohawk Industries and Synchrony Financial.

Mohawk missed earnings and dropped 17% to a new 52 week low.

Mohawk's (MHK) Q2 Earnings and Revenues Miss Expectations

Synchrony got dumped by Wal-Mart and dropped 10%.

This surprise announcement was released during the trading day. 

So I was literally watching the stock drop in real time.

Walmart Taps Capital One for Store Cards, Dealing Blow to Synchrony

(Ironically, Capital One closed down 2%. Isn't that good news for Capital One?)

Welp, even though I am surprised and disappointed (and a little hungry), I decided not to sell.

I reviewed my posts that show why I bought each stock.

Based on that, I am considering buying more shares of each stock.

I hope I am not being overly optimistic, but I feel like both of these stocks will come back.

Of course, it will take some time.

Thu, Jul 26, 2018 MHK @ $179.31

Thu, Jul 26, 2018 SYF @ $30.00

Buying To Close

This is a Post from the Symbol Surfing Blog from Thu, Jul 26, 2018.

Today I bought the PCG Jan 18 2019 50.0 Put @ $7.15 to close out the position.

This was a long 7 month trade.

Interestingly enough, the stock price today was $44.70.

The stock price did not move much since Fri, Jan 5, 2018 when it was at $44.29.

I sold the option at $8 and bought it at $7.15.

$8 - $7.15 = $0.85

$0.85 / $8 = 10.625%

The return on the option trade was a little over 10%.

If I had purchased the stock, the return would have been about 1%.

$44.70 - $44.29 = $0.41

$0.41 / $44.29 = 1% plus a couple of dividend payments. Oh wait, PCG suspended it's dividend.

So the stock price return would have been 1%.

This is a situation where selling a put performed better than buying the stock.

Thu, Jul 26, 2018 PCG @ $44.70