Getting in on NKE and selling off DIS

I like buying undervalued stocks. Disney under 89 is undervalued. NKe under 80 undervalued. Apple under 190 undervalued. Microsoft at 400 is undervalued. So right now I’m picking NKE. I’m sure that will change. So other recent golden finds was when BAC was under 30 during the time the banks were having trouble.
Besides the tech stocks and NKE what is everyone else buying?

Nike announced projected revenue for 2025 will be lower than they thought previous. That’s why it dropped 25ish in price

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So other recent golden finds was when BAC was under 30

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Yep!

I had enough in the financial sector already, but took BAC at 25.50 (on a put assignment). Happy to hold that longer term.

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Anyone else want to share your current strategy

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I wanted PANW when it dropped after the last report.. It was down around 260-70. Never pulled the trigger.


As far as strategy, I have been very much so aggressive in trying to get assigned. Let's use PANW. 100 shares will cost you $34200 (as of this response). $341.91 is the current price. That's only .58 from $342.50 strike.

I would sell that 342.5 strike for $580 wanting to be assigned. So the total profit would be $580+58= $638.

I then sell puts on it until back in. Do it all over again.

I started by (and still do) PMCCs (poor mans covered call). Example with PANW as we talked about would be to purchased a long call 1 to 2 years out. Then sell a short. The difference here is the delta on the long, the price gap between bid and ask. It creates a different enviroment in that you gotta make that difference up and account for the delta (say .90.. that means for every $1 the stock moves up you make .90 cents.) Naturally, you would not be able to sell that 342.5 strike. You would not make any money. In fact you would have to move out the 347.5 to make around 3 to 400.

Just from a business perspective I'd rather be in on Disney coming off better numbers at the parks, a box office boom with Inside Out 2,and likely another coming with Moana 2 in the fall vs an apparel company in an increasingly competitive market. I would probably buy both, think DIS is the better buy of the two but a big part of that is DIS being undervalued while also being a more diverse business.

Woke issues with NKE and quality are a concern.

If they clean house its an opportunity but not sure they're willing to do that.

They've really put themselves in some deep mud for the foreseable future.

100 at 73 is nice. I bought at 75 and the I keep buying. Thinking this is at least 95 by next July. Olympics will have a positive affect and new basketball shoes will too

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Go woke, go broke. Is that the reason why NKE is down?

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I'm sure that will be the reason according to poliboard types, but Nike's woke shift happened quite a while ago and they actually made more money than ever after they picked up Kaep etc.

There issues stem MUCH more from an increasingly competitive space where there are a lot more companies producing similar/better products (Hoka, Lulu, etc) that weren't there before.

Also athleisure as a general everyday style was MASSIVE starting about 15 years or so ago. That style is starting to fade so less people are buying Nike products.

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Besides the tech stocks and NKE what is everyone else buying?

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SBUX is another one Im looking at. Between NKE, DIS, and SBUX, they cant all be value traps right? ..... right?

ETA: I think banks have plenty of room to run if Trump takes office and regulations are loosened. I expect them to run up into the election.