Booking a Profit!

At HX Research, we publish both FREE and PAID newsletters.

Our flagship email – this one – HX Daily comes out every trading day. We look to share our insights about trading and investing, covering a broad range of topics.

We often will talk about individual stocks or ideas and give some insight. Many of these are actionable ideas, but they are not formal recommendations.

THOSE we save for our PAID subscribers.

However, we make a few of those formal recommendations available to our FREE subscribers. At any time, we might have a couple out there.

We want to give you all an idea of the opportunity you are missing!

The opportunity to MAKE MONEY and change your financial future. We believe that through time, our PAID subscriptions will pay for themselves many times over!

Today, we will take profits on one of those free ideas.

Below is what we sent to our PAID subscribers of our TRADING product – HX Income – earlier today.

We hope you made some money on this trade, and thank you for your support!

We have operated the income-generating strategy that we use at HX Income for the better part of five years now.

Over that time, it has consistently generated income and profits for our readers with exceptional hit rates.

Most of the time, income is "harvested" when the put options that have been sold expire.

Occasionally, however, we end up owning the stock.

The way the product is set up – this isn't a bad outcome. We only recommend great companies that we would love to own the stock at a lower price.

Almost all these situations also work out positively. They just take a little longer than the options expiration.

Today, we are booking profits for one of our FREE ideas.

We thought the stock market overreacted with this all-time winning company, which created an opportunity. 

The timing of the position meant that we ended up owning the stock, but now we are sitting on a nice profit. Now we are going to realize that profit.

Here is the update…

The company is digital marketing and creative software company Adobe Inc. (NASDAQ: ADBE).

For our FREE subscribers - we recommended selling the March 15, 2024, $535 puts back on March 4.

If you sold those when we published, you brought in $9.11 of income per share. This created an effective price of $525.89 for the stock. (This is the $535 strike price minus the $9.11 of income.)

We liked this idea as the stock had sold off on concerns about the impact of artificial intelligence or “AI” on their business. We were doubtful that AI would really impact them negatively and that it likely would be a positive.

We were also very confident that it would NOT impact them before the options expire a month later.

You can read the original note here.

Out of the gates, the trade looked great. Here is the chart of the stock year-to-date…

Our challenge was that when the company reported earnings on March 14 (the day before options expiry), the stock market reacted negatively to the report.

We published a thorough analysis of that report, and you can read it here.

Our view was that the stock market was again overreacting, this time to conservative guidance and a small (less than $35 million) change in guidance on a particular business line.

We encourage you to read our full note above.

We believed this was "noise" and that the company would be fine. They have a decade-long track record of execution and exceptional market positioning.

We felt that would play through in the next few months, and that is precisely what happened.

The company reported blow-out revenue and earnings on the following earnings report (June 13). They also gave strong guidance.

The stock soared by +14.5% on the day, and our patience proved justified.

We felt that the stock would continue to move higher after the great quarter, and that is what it has been doing.

We now think it is time to book profits.

If you sold the put options when we first published (and created the stock at the price we referenced above), you should be sitting on a +3.6% profit or +11% annualized.

It has been a ride, but the process that we have developed over thirty years has consistently produced strong returns. Trust the process!