Savvy Trades and Investments

[researcher59]

WBA - I picked up a very small starter position today and wrote the weekly covered calls against it .... premiums are pretty good for a stock like this so I hope to steadily bring down my cost basis by rolling over the calls each week. WBA Feb Q2 was solid with adj EPS of $1.20, but for 6 months it was $1.86, so the guidance implies EPS of just $1.41 midpoint for the 2nd half. Maybe they're being conservative ? But this stock has been in a downward spiral for the last decade and maybe it's still just a value trap with a forward PE of 6.

Ironically they've spent billions of dollars buying back shares at much higher prices over the past decade. The money would have been better applied by reducing debt. Very remindful of BBBY (Bed Bath and Beyond). They spent a ton of money buying back shares and then went bankrupt because they couldn't service the debt. LOL