Summary
Highlights
The S&P 500 recently closed September in the green, defying its historical trend as the worst month for the stock market. Historically, when the S&P 500 makes a new September high, the fourth quarter often sees positive returns. The fourth quarter is traditionally the strongest for stocks. However, current hurdles include a potential government shutdown and an upcoming jobs report. A market pullback is seen as an opportunity to buy stocks at lower prices.
PayPal is presented as an incredibly cheap fintech play benefiting from e-commerce growth and the monetization of its Venmo app. With a market cap of $64 billion, shares are down 10% over the past 12 months. E-commerce sales are growing, and PayPal's operating margins are at record highs of 18.2%. The stock trades at a forward PE of 12.9 times, well below its 5-year average of 26.9 times, with expected earnings growth of 12%. An option play for PayPal is suggested, selling a November 21st $65 put for $230 per contract.
AMD is highlighted as a stock with significant growth potential, nearing a $160 billion market cap. Shares are up 34% year-to-date, with over 100% gains from their April 8th low. Revenue growth is strong, and free cash flow is at a record level. AMD trades at a forward PE of 31.8 times, below its 5-year average of 35.5 times. Earnings are projected to grow 54% next year and 24% the following year, resulting in a PEG ratio of 0.82. For options, selling a November 21st $140 put could yield $415, while a $145 put could yield $550 per contract.
JD.com, with a market cap of $47 billion, is a Chinese e-commerce company. While the host personally avoids owning Chinese stocks outright due to government intervention risks, he sees opportunities in options. Despite a challenging macro environment in China, JD.com's financials have grown significantly over the past decade, with revenues increasing from $27.9 billion to $177.7 billion and active users up. The stock is considered very cheap, trading at a forward PE multiple half of its 5-year average (13.4 times) and a PEG ratio of 0.4. For JD.com, buying a January 16, 2026, $40 call option for $260 per contract could offer significant upside potential.
The speaker invites viewers to a 3-day options workshop to learn strategies for generating income, even with a smaller portfolio. Participants will receive recordings and a 5-day free trial to the 'options edge' community on Discord. The workshop aims to provide a blueprint for a more conservative approach to options trading.