HX Income - Position Update

Our HX Income strategy is built to help you generate income.

We identify high-quality companies and wait for them to stumble. Once they become too oversold, we dive in to ensure they are still great companies and stocks.

If our research comes back positive, we show you how to make income off the situation!

You can read about our strategy in the HX Income primer here.

With options expiration today, we are going to see income booked on a couple of recent recommendations.

Here are the updates…

In September, we recommended selling puts on McKesson Corporation (NYSE: MCK), a leading pharmaceutical distribution company.

This is one of the largest companies in the S&P 500 by revenue, and you have likely interacted with it multiple times and never even knew it!

It is also a very stable-growing business with good visibility. Historically, the company has seen some periods of lower-than-expected revenue growth, but it always hits the numbers.

After a slightly worse than expected revenue report in the most recent quarter, the stock sold off and hit rarely oversold levels. We felt this created an income opportunity.

In early September, we recommended selling the October 18 $500 puts. The stock has done very little, which puts us in a good position with these puts.

Just two weeks ago, we shared another income opportunity in a stock that was a recent winner for our HX Trader strategy: medical testing company MedPace Holdings, Inc. (NASDAQ: MEDP).

This company is a leader in clinical trials for the pharmaceutical industry. With the incredible growth in that space, they have seen tremendous earnings growth, making it a great stock.

Like MCK, they never miss the numbers but sometimes see timing issues around revenue growth. They reported a slight revenue miss in the most recent quarter, which hit the stock.

Just like MCK, we thought the stock wouldn't go any lower and would likely recover.

That is what happened with the stock. While it has not rallied very much, it has also not gone lower, and this presents us with an income opportunity.

We recommended selling the October 18 $320 puts, which looks like a good trade.