In episode 1, Brandon and Christine give their weekly stock picks, plus discuss the difference between stocks and options.Listen to “Stocks or Options?” on Spreaker.
- The NASDAQ has been rather weak over the past week or two.
- The market is pricing in a ton of optimism.
- Brandon wants to short the market, but believes there is too much momentum behind it right now.
- His weekly stock pick is Big Lots, Inc. (NYS:BIG). They have already risen 27% year-to-date, but are still cheap with a P/E of only 8.2.
- His earnings play is Lennar Corp. (NYS:LEN), who beat earnings by over 50% in their last quarter, and are expected to beat by 6.98% for the current quarter.
- Brandon believes options are almost always the right choice, about 90% of the time.
- The only time he would not use options is in two cases:
- He believes in the company and wants to own their stock for the long-term.
- The options for the underlying stock do not have sufficient liquidity (as indicated by too wide of a bid/ask spread).
- Options are great because you can profit whether you believe a stock will go up, down, sideways, or trade in a given range.
- Options also allow you to target a desired probability of profit, whereas stocks are more or less 50%.