Bought 1000 shares of LexinFintech Holdings (LX).
LexinFintech Holdings (LX) is an up and coming FinTech company based in China. You probably have never heard of LX, but if you continue reading Main Street beats Wall Street you will know the stock well very soon.
LexinFintech Holdings Ltd. is a holding company. The Company is primarily engaged in providing online direct sales services and online consumer finance services. The Company’s online consumer finance platform, Fenqile, offers customers personal installment loans, installment purchase loans and other loan products. Through its online investment platform, Juzi Licai, the Company matches funding from individual investors with customer loans. The Company also offers Le Card credit line to its customers. The Company serves the credit needs of the customers aged between 18 and 36 in China.
LexinFintech Holdings (LX) has an average rating among analysts of buy, with an average price target of $16. On November 19th BofA Merrill Lynch lifted it’s price target on LexinFintech to $23.80 From $22, the bank also maintains a buy rating.
LX will be in one of my portfolios in my new section Wealth Builder, which will be released this week. Any stock entering a portfolio will get a full report on why it’s part of my Wealth Builder. I do not have that report ready right now but will be posted when I make the Wealth Builder section available in the menu bar.
Today I bought 1000 shares of the stock.
Buy 1000 Shares LX @ $11.90
I would also buy a LEAPS on this stock but they’re not available. The furthest they go out with options in May 2020. I’ll be looking at LX as a long term play and May 2020 in only 6 months away. At the 6 month point options are subject to a rapidly increasing Time Decay.
As I was writing this post reporting the purchase of LX I was filled on the selling of an option on Square (SQ). With the stock at $69.08, up $1.33 on the day, I sold 10 contracts of the SQ 11/29/19 $70 Calls. At the moment this is a Naked Call. I will be watching closely.
Sell to Open 10 SQ 11/29/19 $70.00 C @ 55¢ (+$550)
Not sure how long I’ll be Naked but I put a buy order in for 1000 shares at $69.90. This is a hot stock so even with the buy order I give this trade a Risk Factor 4. This is risky because this stock can jump over night and my buy order wouldn’t be filled. I went Naked because going into December I’m going to try to not own much stock. I’m hoping with the stock up big today, and Thanksgiving this week, it will not hit $70. I’ll be watching especially close because the last week in November is traditionally a very bullish week in the market.
I would like to welcome the new readers. Keep studying and email me any questions you might have. We will make a lot of money in 2020!
Successful trading,
Steve
The Options Coach