Hello Traders,
We made a couple of new additions to the portfolio today. One we sold another “naked call” in SPY. Obviously we don’t see that as being uncovered because it is hedged (covered) by a large quantity of stocks we hold. However, the broker considers it naked because we don’t own a full 100 shares of SPY. While this isn’t a lot of income, it does give us the opportunity to make some profits and possibly even get “short” this market on Friday if SPY bounces up to that strike price.
In addition, we added a GM 1×2 put spread. We closed part of our position in GM a month or so ago. We replaced it with the XLY ETF. We have since taken profits on that XLY position. This is also our second 1×2 put spread in GM as the other expired for a full profit of the credit received. So, this has been a gift that keeps on giving!
Sold to open: SPY May 15th (monthly) 285 calls (this is only for those with a portfolio of stocks to protect it)
Limit credit: 0.51
Bought to open: GM June 19th (monthly) 17.00 strike puts (ratio of 1)
Sold to open: GM June 19th (monthly) 16.00 strike puts (ratio of 2)
Limit Credit: 0.25
We have another options expiration class tomorrow morning at 10:00 a.m. eastern time.
See you then!