Hello Investors,
We have now passed the June monthly options expiration cycle. As such we have added some new covered calls and a more complex structure in CCJ. The CCJ position is a call butterfly + 1×2 put spread. The call butterfly makes money if the stock goes higher. The 1×2 put spread will allow us to buy more stock at a discount if the stock falls in price.
Sold to open: NUE Aug 15th (monthly) 135.00 strike call
Credit: 3.10
Sold to open: SNAP Aug 15th (monthly) 11.00 strike calls
Credit: 0.19
Sold to open: OXY Aug 15th (monthly) 55.00 strike call
Credit: 0.46
Buy to open: CCJ Aug 15th (monthly) 70.00 strike call (ratio of 1)
Sell to open: CCJ Aug 15th (monthly) 85.00 strike call (ratio of 2)
Buy to open: CCJ Aug 15th (monthly) 100.00 strike call (ratio of 1)
Debit: 3.15
Max risk = 3.15 or $315.00 per spread
Max reward = 11.85 or $1,185.00 per spread
Buy to open: CCJ Aug 15th (monthly) 65.00 strike put (ratio of 1)
Sell to open: CCJ Aug 15th (monthly) 55.00 strike put (ratio of 2)
Debit: 1.51
Probable risk = 1.51 or $151.00 per spread
Max reward = 8.49 or $849.00 per spread
Max risk = own 100 shares of stock at a cost of 46.51/share
Have a great week!