Author: Bryan Halliday

We are making a lot of changes as we have arrived at option expiration Friday today. As per yesterdays update, most of our covered calls will expire OTM for a full profit. Rolling out our DELL covered call as follows: Buy to close: DELL Nov 17th (monthly) 70.00 strike call Sell to open: DELL Dec 15th (monthly) 70.00 strike call Credit: 2.20 – this order has been filled Rolling out our DIS covered calls as follows: Buy to close: DIS Nov 17th (monthly) 95.00 strike calls Sell to open: DIS Dec 15th (monthly) 105.00 strike calls Debit: 0.03 – this order has been filled We ended up with +1.36 or +$136.00 overall on the DIS 1×2 call spread. Closing our BAC 1×4 call spread as follows: Sell to close: BAC Nov 17th (monthly) 27.00 strike calls (ratio of 1) Buy to close: BAC Nov 17th (monthly) 29.00 strike calls (ratio of 4) Credit: 0.02 – this order has been filled We bought this spread for 0.16 so this is a loss of -0.14 or -$14.00 per spread. Closing our EFA 1×4 call spread as follows: Sell to close: EFA Nov 17th (monthly) 68.00 strike calls (ratio of 1) Buy to close: EFA Nov 17th (monthly) 71.00 strike calls (ratio of 4) Credit: 1.24 – this order has been filled We bought this spread for 0.43 and this locks-in a profit of +0.81 or +$81 per spread. Closing our PLTR Butterfly spread as follows: Sell to close: PLTR Nov 17th (monthly) 17.00 strike calls (ratio of 1) Buy to close: PLTR Nov 17th (monthly) 20.00 strike calls (ratio of 2) The 23 strike calls do not need to be closed Credit: 2.68 – this order has been filled We bought this spread for 0.70 and this locks-in a profit of +1.98 or +$198 per spread. Selling covered calls against our 300 BAC shares as follows: Sell to open: BAC Dec 15th (monthly) 32.00 strike calls (ratio of 3) Credit: 0.11 – this order is still pending and has not been filled Selling covered calls against our 200 GOLD shares as follows: Sell to open: GOLD Dec 15th (monthly) 18.00 strike calls (ratio of 2) Credit: 0.07 – this order is still pending and has not been filled and Sell to open: GOLD Jan 19th (monthly) 19.00 strike calls (ratio of 2) Credit: 0.12 – this order is still pending and has not been filled Our November covered calls are expiring, selling another c.c. on TMUS. Sell to open: TMUS Jan 19th (monthly) 165.00 strike call Credit: 0.40 – this order is still pending and has not been filled Our November covered calls are expiring, selling another c.c. on SNOW. Sell to open: SNOW Jan 19th (monthly) 210.00 strike call Credit: 1.74 – this order is still pending and has not been filled Buying a put butterfly in SNOW as earnings approach. Buy to open: SNOW Dec 15th (monthly) 155.00 strike puts (ratio of 1) Sell to open: SNOW Dec 15th (monthly) 135.00 strike puts (ratio of 2) Buy to open: SNOW Dec 15th (monthly) 115.00 strike puts (ratio of 1) Debit: 3.60 – this order has been filled Max risk = 3.60, Max reward = 16.40 The Nov cc will expire today. Buying a 1×2 call spread against our CVX shares as follows. Buy to open: CVX Jan 19th (monthly) 145.00 strike call (ratio of 1) Sell to open: CVX Jan 19th (monthly) 155.00 strike call (ratio of 2) Debit: 2.07 – this order has been filled Max risk = 2.07, Max reward = 7.93

We closed and took profits on our WBA 1×2 put spread this morning as follows: Sell to close:  WBA Nov 17th (monthly) 22.50 strike put (ratio of 1) Buy to close: WBA Nov 17th (monthly) 20.00 strike put (ratio of 2) Credit: 1.43 – this order has been filled The result is a profit of +1.08 or +$108.00 per spread We are taking profits in our 1×2 style call spread in BRKB. We had made two adjustments to this trade previously. One was we rolled one of the short calls up from 355 to 365 strike. The other was we rolled one of the short calls in from December to November. The trade worked out well and we are locking in the profit as follows: Sell to close:  BRKB Dec 15th (monthly) 345.00 strike call (ratio of 1) Buy to close: BRKB Nov 17th (monthly) 355.00 strike call (ratio of 1) Buy to close: BRKB Dec 15th (monthly) 365.00 strike call (ratio of 1) Credit:  9.85 – this order has been filled The result is a profit of +290 or +$290.00 per spread We have a pending order to take profits on our XLE put butterfly if we can get filled. The stock will need to fall a bit lower today. Sell to close:  XLE Dec 15th (monthly) 87.00 strike put (ratio of 1) Buy to close:  XLE Dec 15th (monthly) 82.00 strike put (ratio of 2) Sell to close:  XLE Dec 15th (monthly) 77.00 strike put (ratio of 1) Credit: 1.95 – pending order and has not been filled

Our Target (TGT) position has exploded to the upside. Unfortunately, we are way ITM (in-the-money) on our covered call at this point. Certainly a massive move higher is better than lower from an account value stand point. However, this also means that our losses on the short call offset much of the gain from the stock. So, instead of a big profit, you are left with a smaller profit overall. Now, we only recently initiated this position. At these levels, we are inclined to let the stock get “called away”. However, we will be looking for opportunities to re-enter the stock in the future. We have a variety of trades going into options expiration tomorrow: Covered calls in the following: BRK.B, TMUS, SNOW, DELL, DIS, CVX, TGT, GOLD Butterfly or Ratio spreads (1×2 or 1×3 or 1×4): WBA, BAC, EFA, TGT For the most part, we are in pretty good positions. We will need to make a decision on rolling-out or letting TGT and DELL stock get “called away”. We will have some adjustments in the ratio spreads but would prefer to make these changes Thursday or Friday. So, for now we will allow the trades to continue to progress toward expiration Friday!

We are closing our 1×2 by rolling up the short strikes for a profit as follows: Sell to close:  DIS Nov 17th (monthly) 87.00 strike call (ratio of 1) Buy to close: DIS Nov 17th (monthly) 92.00 strike call (ratio of 2) Sell to open:  DIS Nov 17th (monthly) 95.00 strike call (ratio of 2) Credit:  2.50 We paid 0.50 debit so this locks-in a profit of $2.00 or $200 per spread

We own 200 shares of SNOW and have two November covered calls. One of those is way up at the 200.00 strike price. That is way OTM and very very likely to expire worthless. However, that is not a guarantee. We are selling a new covered call in December to replace that covered call. However, we understand that this leaves that Nov 200 strike call “naked” through next Friday. If uncomfortable or unable to do naked calls, you could either buy the 200 strike call back. Or, an even smarter change would be to maybe buy the Nov 195 strike call for 0.01. If you can get the 195 for the same price as buying back your 200 strike call, that is a better option. Sell to open: SNOW Dec 15th (monthly) 190.00 strike call Credit:  2.53 This leaves the Nov 200 strike covered call “naked” through next week. See the details above. We took profits on our IWM call butterfly as follows: Sell to close: IWM Dec 29th (quarterly) 162.00 strike call (ratio of 1) Buy to close: IWM Dec 29th (quarterly) 172.00 strike call (ratio of 2) Sell to close: IWM Dec 29th (quarterly) 182.00 strike call (ratio of 1) Credit: 3.63 This locks-in a profit of +93.00 per spread.

We want to add a bearish hedge trade on Target (TGT) as follows: Buy to open:  TGT Nov 17th (monthly) 110.00 strike put (ratio of 1) Sell to open:  TGT Nov 17th (monthly) 100.00 strike put (ratio of 2) Buy to open:  TGT Nov 17th (monthly) 90.00 strike put (ratio of 1) Debit: 2.23 Max Risk = 2.23 or $223.00 per spread Max Reward = 7.77 or $777.00 per spread

We are entering a new bearish position in the Energy sector. Buy to open:  XLE Dec 15th (monthly) 87.00 strike put (ratio of 1) Sell to open: XLE Dec 15th (monthly) 82.00 strike put (ratio of 2) Buy to open:  XLE Dec 15th (monthly) 77.00 strike put (ratio of 1) Debit:  1.04 Max Risk = 1.04 or $104.00 per spread Max Reward = 3.96 or $396.00 per spread We are also entering into a new bearish position in QQQ. Buy to open:  QQQ Jan 19th, 2024 (monthly) 360.00 strike put (ratio of 1) Sell to open: QQQ Jan 19th, 2024 (monthly) 340.00 strike put (ratio of 2) Buy to open:  QQQ Jan 19th, 2024 (monthly) 320.00 strike put (ratio of 1) Debit:  2.38 Max Risk = 2.38 or $238.00 per spread Max Reward = 17.62 or $1,762.00 per spread