Trade Alert 12/14/2023

We have seen a huge move higher in stocks since the FOMC meeting yesterday. The move in rates has been historic with a years worth of rates gone in only 1 day. This has sent certain sectors blasting higher. Specifically, anything related to real estate, banks etc. A few changes to our portfolio. Rolling up and out on our covered call in SNOW as follows: Buy to close:  SNOW Dec 15th (monthly) 195.00 strike call Sell to open: SNOW Dec 29th (weekly) 205.00 strike call Debit: 0.72 – order filled We own 200 shares and rolling up and out on our covered calls in DELL as follows: Buy to close:  DELL Dec 15th (monthly) 70.00 strike call (quantity of 1) Sell to open: DELL Jan 19th (monthly) 70.00 strike call (quantity of 1) Credit: 1.53 – order filled Buy to close:  DELL Dec 15th (monthly) 70.00 strike call (quantity of 1) Sell to open: DELL Feb 16th (monthly) 75.00 strike call (quantity of 1) Debit: 0.20 – order filled Rolling up and out on our covered calls in Z as follows: Buy to close:  Z Dec 15th (monthly) 47.50 strike call (quantity of 2) Sell to open: Z Jan 19th (monthly) 50.00 strike call (quantity of 2) Debit: 1.30 – order filled We also bought a 1×2 put spread. This would require us to buy 100 more shares on a really big drop. However, that big drop would allow us to pay less to buy back calls. So, this is a bit of a hedge style trade. Buy to open: Z Jan 19th (monthly) 60.00 strike put (ratio of 1) Sell to open: Z Jan 19th (monthly) 55.00 strike put (ratio of 2) Debit: 0.60 – order filled Probable Risk = 0.60 or $60.00 per spread Max reward = 4.40 or $440.00 per spread If the stock is below 50.40/share this has additional risk. However, our ITM cc’s would be in much better shape. Rolling up and out on our covered call in GM as follows: Buy to close:  GM Dec 15th (monthly) 35.00 strike call Sell to open: GM Feb 16th (monthly) 38.00 strike call Credit: 0.25 – order filled Our BRKB Dec covered call is set to expire worthless. We are selling another call at this time. Sell to open: BRKB Feb 16th (monthly) 380.00 strike call Credit: 1.65 – order filled Sold 3 contracts of short puts in BAC. We will need to “buy back” the covered calls tomorrow. Sell to open: BAC Dec 15th (monthly) 33.00 strike puts Credit: 0.16 – order filled This helps a little bit if the stock is still above 33/share tomorrow.