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Trade Alert 6/23/2025

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!
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Trade Alert 6/20/2025

A few changes as we move into monthly expiration today. We updated all of our June trades in the newsletter sent out on Monday. Things have gone pretty much as expected with the exception of EQT, which has rallied further. We are adjusting it and OXY which was expected.

Sell to close:  OXY June 20th (monthly) 42.50 strike call
Credit: 3.15
This locks-n a nice profit of +$245.00 in this 1×2 call spread
The 47.50 calls should expire OTM this weekend

We are rolling out and down on our EQT covered calls (selling ITM) as follows:
Buy to close:  EQT June 20th (monthly) 60.00 strike call
Sell to open: EQT Aug 15th (monthly) 55.00 strike call
Credit: 6.60

Finally, we have sold a put to get back into CCJ as follows:
Sell to open: CCJ July 18th (monthly) 60.00 strike put
Credit: 0.50

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Trade Alert 6/18/2025

We did not get filled on our adjustment for PYPL on Monday. However, that has worked out nicely as we allowed the stock to pull back in price yesterday and early today. We have rolled up and out with the August expiration today.

Buy to close: PYPL June 20th (monthly) 67.00 strike call
Sell to open: PYPL August 15th (monthly) 70.00 strike call
Credit:  1.50
This locks in a nice profit on the June expiration and gives us a bigger premium into the future.

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Trade Alert 6/16/2025

Hello Investors,
Today we discussed the importance of the E (earnings) in a p/e ratio. How it can move in 5-directions and a big increase in earnings offsets any problems with paying too much for a stock. But any drop in the earnings, can create problems for an investment. We also placed a pending order that may not get filled today.
An attempt to roll out and up but only if we get our price (not likely but possible)
Buy to close: PYPL June 20th (monthly) 67.00 strike call
Sell to open: PYPL July 18th (monthly) 70.00 strike call
Debit: 1.00 – pending order
If this order does NOT get filled, it will cancel at the end of the day and we may go a different route
In addition, we updated our other June expiration positions for this weekends expiration.
CCJ – all shares will be “called away”
EQT – cc likely to expire out of the money but we will monitor
NUE – no adjustments likely required and cc should expire for a full profit
SNAP – no adjustments likely required and cc should expire for a full profit
OXY – 1×2 call spread in a great spot, adjustments will be made later this week
SPY – 1×2 put spread in a bad spot, likely to expire OTM
Our latest trade journal is updated.
Have a great week!
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Trade Alert 6/13/2025

We will be live on Monday morning for our regular meeting. We thought we were going to have a scheduling problem but that is not the case. We are entering into a new trade in Newmont Mining (NEM). The gold markets have consolidated and are breaking higher again.

Buy to open:  NEM Aug 15th (monthly) 60.00 strike call (ratio of 1)
Sell to open:  NEM Aug 15th (monthly) 65.00 strike call (ratio of 2)
Buy to open:  NEM Aug 15th (monthly) 70.00 strike call (ratio of 1)
Debit: 0.70
Max risk = 0.70 or $70.00 per spread
Max reward = 4.30 or $430.00 per spread

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Trade Alert 6/9/2025

Hello Investors,
The markets have far exceeded what we expected was possible over the short-term. While that doesn’t guarantee long-term upside, it has to be respected in the short-term. The longer term bear market might be delayed due to stimulus, AI or other factors. While the issues in valuation and other metrics aren’t going away, they also aren’t short-term indicators but play out over long periods of time (years/decades not weeks/months). Today we discussed short selling stocks, primarily used for hedging. However, could be used if a full bear market were to materialize. Finally, we entered into a bearish trade in Kraft KHC.
Buy to open: KHC Aug 15th (monthly) 27.50 strike put (ratio of 1)
Sell to open: KHC Aug 15th (monthly) 25.00 strike put (ratio of 2)
Buy to open: KHC Aug 15th (monthly) 22.50 strike put (ratio of 1)
Debit: 0.70
Max risk = 0.70 or $70.00
Max rew = 1.80 or $180.00
Just a calendar note, we will not be holding a live Trading Mentors next Monday.
Have a great week!
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Trade Alert 6/4/2025

Yesterday the news came out that Constellation Energy (CEG) and Meta had come to agreement to build out a uranium energy plant. Most telling, CEG gapped sharply higher to proceed to sell-off the remainder of the day. We see this as a very good thing long-term fundamentally for the uranium space (CCJ). However, also a signal of short-term exhaustion. So, we have a short put in CCJ, we are converting it into a 1×2 put spread through buying a put spread today. This will improve the position further if the stock can pullback in price in the near term. If the stock goes higher, then this adjustment will result in a small profit when you consider what we collected for the short put originally and what we are paying for this put spread today.

Buy to open: CCJ June 20th (monthly) 58.00 strike put (ratio of 1)
Sell to open: CCJ June 20th (monthly) 54.00 strike put (ratio of 1)
Debit: 1.00

We collected 1.15 credit for selling the 54 strike put previously. This put spread costs us 1.00 debit. So, we can now make anywhere from +0.15 profit up to +4.15 profit if the stock falls lower in price.

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Trade Alert 5/23/2025 #2

We have sold another put in CCJ. This is a “promise” to buy more shares if the stock goes down. Now, for us that really probably isn’t the case because we have already made a “promise” to sell through our covered call. So, if the stock stays above 54/share the put will expire. If the stock is below 54/share, we will buy 100 more shares but that will likely be offset by the short call exercising and selling 100 shares of stocks. If the stock falls below 50/share, then we could end up with more shares overall but we don’t see that as an unattractive possibility either.

Sold to open:  CCJ June 20th (monthly) 54.00 strike put
Credit: 1.15

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Trade Alert 5/23/2025

We own 80 shares of NUE and have been selling covered calls. We have bumped that up today to the full 100 shares.
Bought 20 shares of NUE at 109.70 per share.

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Trade Alert 5/14/2025

We have 2 contracts of the May 16.00 strike covered calls expiring in SNAP. Instead of reselling additional cc’s, we have sold those 200 shares of SNAP. This will reduce our position size overall from 500 shares to 300 shares as of today. The May 16 strike calls will expire away this weekend. We are leaving them “naked” as they are nearly guaranteed to expire OTM.

Sold (exited): SNAP 200 shares at 9.06 per share

We have exited the final contract of our XLE bear call spread. We will make money overall from this trade (long puts and prior bear call closed).
Buy to close: XLE May 16th (monthly) 85.00 strike call
Sell to close: XLE May 16th (monthly) 88.00 strike call
Debit: 0.87