Gearing Up For Boston Beer Summer Sales

It is usually right about this time every year that I start taking another look at a favorite beer of mine, Samuel Adams, and that means The Boston Beer Company. This is one of those companies that I love to own, but prefer to trade. It just seems to consistently deliver for me in the way of gains if I buy a few months before the summer, and sell it a few months before the winter.

It's beer right? And people tend to drink more beer in the summer. Stands to reason? I think so, and the results of making this trade year after year so far has at least confirmed my theory on this.

Not to mention the fact that The Boston Beer Company is also a consistent solid performer, and every year I open a new position in the company, it costs me more upfront. There is also some appeal, I think, to the fact that Jim Koch loves beer, and is passionate about his business. The result is a solid revenue base, solid growth in the business, and when you have that personal touch added in—this tends to go hand in hand with solid performance.

The Boston Beer Company also happens to be, technically, the last big American brewery since Miller, Coors, and Anheuser-Busch were all bought by foreign beer companies.

I'll be watching the stock price over the coming weeks, and will begin to open my position. I'll also be watching the put options (which I prefer to sell) to make some money on that end of things as well.

With the put options I always take a look at where I think the stock price will go, and will set my strike price well enough below that so that I can essentially keep the premium paid to me, and not have to actually buy the stock. A process that I can repeat a few times while my interest is piqued in the stock and reap additional rewards.

I also happen to like the fact that a few of my summer six packs will be bought and paid for just by owning the stock and selling options on it. Best of both worlds if you ask me.