Author: Bryan Halliday

We have entered into a new put butterfly in QQQ. Sorry for the late notice. Buy to open:  QQQ April 19th (monthly) 390.00 strike put (ratio of 1) Sell to open:  QQQ April 19th (monthly) 360.00 strike put (ratio of 2) Buy to open:  QQQ April 19th (monthly) 330.00 strike put (ratio of 1) Debit: 3.75 – this order has filled Max risk = 3.75 or $375.00 per spread Max risk = 26.25 or $2,625.00 per spread

We have closed our entire ARKK position. The hedge was stopped out this morning on the gap down at 48.87/share. The result is a loss of -$58.50 on the hedge. The spread was closed at 1.02 debit. The result is a gain of +$28.00 overall. So, our overall result is a loss of -$30.50 nearly breakeven. Buy to close:  ARKK Jan 19th (monthly) 50.00 strike call Sell to close:  ARKK Jan 19th (monthly) 55.00 strike call Debit: 1.02

This is our 2nd newsletter today. We own 200 shares of DIS and have covered calls sold against. Today, we converted that into a 1×2 call spread through buying a lower strike call. Buy to open: DIS Feb 16th (monthly) 95.00 strike call (ratio of 1) Debit: 2.62 – this order has filled This will leave us in a 95-105 1×2 call spread at a total cost of 0.30 or $30.00 of max risk. We have bear call spread in ARKK that we have held for months. It has gone from almost guaranteed success to a potential loser. Quite the reversal over the past month. Expiration is in 2-weeks. We will hedge a little bit of the risk with long stock but importantly one must place a stop loss on the stock shares! Bought: 25 shares of ARKK at 51.21 as a hedge Sell stop-loss below at 49.03 good til canceled (GTC) order The GTC stop loss is an absolute necessity!

We own 200 shares of SNOW but only have 1 covered call at this time. Our other cc expired this past weekend. We are selling another today on the 100 uncovered shares as follows: Sell to open: SNOW Mar 15th (monthly) 200.00 strike call Credit:  12.85 – this order has filled We only own 20 shares of DKS but we are going to sell a covered call against those shares. This cc is far OTM and only partially covered by 20 shares, leaving 80 shares “naked”. So, this is a more risky situation than a standard covered call. Sell to open: DKS Feb 16th (monthly) 170.00 strike call Credit: 0.60 – this order is still pending

This is our 2nd newsletter today! We own 202 shares of CVS and and sold 2 covered calls at the 80 strike in February. We are adjusting the position and it does leave us sort of “naked” on some of the shares. After the adjustments below, we are short 3 calls against 202 shares of stock. However, we also own the March call spread. So, we are 98 shares naked but really only if the stock moves above 90/share by Feb 15th expiration. Something that is both statistically unlikely but also unlikely in our view. And if that is happening, we will pull levers to adjust further. All orders below have been filled. Buy to close: CVS Feb 16th (monthly) 80.00 strike call (ratio of 1) Debit: 2.04 Sell to open: CVS Feb 16th (monthly) 85.00 strike call (ratio of 2) Credit: 0.71 Bought a call spread in March. Buy to open: CVS Mar 15th (monthly) 82.50 strike call (ratio of 1) Sell to open: CVS Mar 15th (monthly) 90.00 strike call (ratio of 1) Debit: 1.37

We have taken profits on our BABA call butterfly. Sell to close:  BABA Feb 16th (monthly) 75.00 strike call (ratio of 1) Buy to close:  BABA Feb 16th (monthly) 85.00 strike call (ratio of 2) Sell to close:  BABA Feb 16th (monthly) 95.00 strike call (ratio of 1) Credit:  2.06 – Order has filled Profit of $0.76 or +$76.00 per spread We have a pending order to take profits on our GLD call butterfly. Sell to close:  GLD Mar 15th (monthly) 190.00 strike call (ratio of 1) Buy to close:  GLD Mar 15th (monthly) 210.00 strike call (ratio of 2) Sell to close:  GLD Mar 15th (monthly) 230.00 strike call (ratio of 1) Credit:  3.85 – not filled as of yet Profit of $1.00 or +$100.00 per spread if it executes.

A few more changes needed before expiration comes to a close. Rolled-out and up on our BAC covered calls Buy to close: BAC Dec 15th (monthly) 32.00 strike calls Sell to open:  BAC Jan 19th (monthly) 35.00 strike calls Debit: 1.07 – order filled We had 3 contracts and rolled all of them. Our covered calls in CVS will expire, sold some more cc’s against our stock shares. Sell to open: CVS Feb 16th (monthly) 80.00 strike calls Credit: 1.00 – order filled Our December covered calls in CVS will expire, sold some more cc’s against our stock shares. Sell to open: CVS Feb 16th (monthly) 80.00 strike calls Credit: 1.00 – order filled Our December covered calls in DIS will expire, sold some more cc’s against our stock shares. Sell to open: DIS Feb 16th (monthly) 105.00 strike calls Credit: 1.16 – order filled Our December covered call in DKNG will expire, sold another cc against our stock shares. Sell to open: DKNG Feb 16th (monthly) 42.00 strike call Credit: 1.10 – order filled Our December covered call in NEM will expire, sold another cc against our stock shares. Sell to open: NEM Feb 16th (monthly) 45.00 strike call Credit: 0.85 – order filled Our December covered call in OXY will expire, sold another cc against our stock shares. Sell to open: OXY Feb 16th (monthly) 67.50 strike call Credit: 0.37 – order filled

We have bought back the covered call in DKS. This may expire but could require a lot of hand holding and risk. So, we are locking in the gain. We paid 0.30 but just pay what is necessary. Buy to close: DKS Dec 15th (monthly) 147.00 strike call Debit: 0.30  – order filled

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.