Author: Bryan Halliday

We are going to make an adjustment on our 1×2 call spread in BRKB. This is a defensive adjustment to improve our trade in the event of the stock going higher into December. This does increase our risk (cost) on the 1×2 spread. But if the stock goes sharply higher, this will save us a lot of money. We rolled up one of the short calls in BRKB as follows: Buy to close: BRKB Dec 15th (monthly) 355.00 strike call (ratio of 1) Sell to open:  BRKB Dec 15th (monthly) 365.00 strike call (ratio of 1) Debit: 3.70 – this order has filled This increases our risk by 3.70 or $370.00 per spread if the stock is below 345/share at Dec expiration. This increases our reward by 6.30 or $630.00 per spread if the stock is above 365/share at Dec expiration.

We are closing the butterfly on PYPL for a profit as follows: Sell to close:  PYPL Jan 19th (monthly) 52.50 strike call (ratio of 1) Buy to close: PYPL Jan 19th (monthly) 60.00 strike call (ratio of 2) Sell to close:  PYPL Jan 19th (monthly) 67.50 strike call (ratio of 1) Credit:  2.26 – this order has been filled Profit of +0.71 or +$71.00 per spread which is a +45.8% return. We own 2 PLTR call butterflys and have an order to exit only 1 of the 2 for a profit as follows: Sell to close:  PLTR Nov 17th (monthly) 17.00 strike call (ratio of 1) Buy to close: PLTR Nov 17th (monthly) 20.00 strike call (ratio of 2) Sell to close:  PLTR Nov 17th (monthly) 23.00 strike call (ratio of 1) Credit:  0.90  – this order has been filled Profit of +0.20 or +$20.00 per spread which is a +28.6% return.

We have a pending order to take profits in our Apple (AAPL) put butterfly if it can hit our price. Sell to close: AAPL Dec 15th (monthly) 175.00 strike put (ratio of 1) Buy to close: AAPL Dec 15th (monthly) 165.00 strike put (ratio of 2) Sell to close: AAPL Dec 15th (monthly) 155.00 strike put (ratio of 1) Credit: 2.20 If filled, this would lock-in a profit of +0.88 or +$88.00 per spread.

Sold a covered call against our VZ long term LEAPS call. Sold to open: VZ Dec 15th (monthly) 37.00 strike call Credit: 0.15 We also bought a call butterfly spread in Paypal (PYPL) as follows: Buy to open: PYPL Jan 19th, 2024 (monthly) 52.50 strike call (ratio of 1) Sell to open: PYPL Jan 19th, 2024 (monthly) 60.00 strike call (ratio of 2) Buy to open: PYPL Jan 19th, 2024 (monthly) 67.50 strike call (ratio of 1) Debit: 1.55 Max risk = 1.55 or $155.00 per spread Max reward = 5.95 or $595.00 per spread

A couple of changes to the portfolio today. We own 400 shares of GOLD and sold covered calls today. Sell to open: GOLD Nov 17th (monthly) 18.50 strike calls Credit: 0.10 We got filled on the 1×4 spreads in EFA and BAC yesterday. We did not get filled on the DIS 1×2 call spread and will try again at 0.50 debit. We own 200 shares of DIS, adding the following if it can get filled: Buy to open: DIS Nov 17th (monthly) 87.00 strike call (ratio of 1) Sell to open: DIS Nov 17th (monthly) 92.00 strike call (ratio of 2) Debit: 0.50 – this order is still pending

Now that we have passed October monthly options expiration, we are busy making changes to the account. The following covered calls have been executed today. We own 200 shares of BRKB but only sold 1 covered call: Sold to open: BRKB Dec 15th (monthly) 370.00 strike call Credit: 0.86 – this order has been filled We own 100 shares of MTCH and sold 1 covered call: Sold to open: MTCH Jan 19th (monthly) 40.00 strike call Credit: 1.64 – this order has been filled We own 300 shares of Z and sold the following covered calls: Sold to open: Z Jan 19th (monthly) 45.00 strike call (ratio of 1) Credit: 1.77 – this order has been filled Sold to open: Z Dec 15th (monthly) 47.50 strike call (ratio of 2) Credit: 0.70 – this order has been filled We own 100 shares of GM and sold 1 covered call: Sold to open: GM Dec 15th (monthly) 35.00 strike call Credit: 0.29 – this order has been filled We own 100 shares of TGT and sold 1 covered call: Sold to open: TGT Nov 17th (monthly) 117.00 strike call Credit: 1.92 – this order has been filled We own 200 shares of DELL but only sold 1 covered call (already have a Nov cc on 100 shares): Sold to open: DELL Dec 15th (monthly) 70.00 strike call Credit: 2.31 – this order has been filled We own 200 shares of CVS and sold the following covered calls: Sold to open: CVS Dec 15th (monthly) 77.50 strike call (ratio of 2) Credit: 0.60 – this order has been filled We own 200 shares of DKNG and sold the following covered calls: Sold to open: DKNG Jan 19th (monthly) 40.00 strike call (ratio of 1) Credit: 0.42 – this order has been filled Sold to open: DKNG Dec 15th (monthly) 35.00 strike call (ratio of 1) Credit: 0.59 – this order has been filled We own 100 shares of OXY and sold 1 covered call: Sold to open: OXY Dec 15th (monthly) 70.00 strike call Credit: 0.87 – this order has been filled We own 100 shares of NEM and sold 1 covered call: Sold to open: NEM Dec 15th (monthly) 45.00 strike call Credit: 0.30 – this order has been filled We own 200 shares of SNOW but only sold 1 covered call (already have a Nov cc on 100 shares): Sold to open: SNOW Nov 17th (monthly) 172.50 strike call Credit: 1.02 – this order has been filled We have a couple of 1×2 and 1×4 spreads that are pending orders. Here are the details: We own 300 shares of BAC, adding the following if it can get filled: Buy to open: BAC Nov 17th (monthly) 27.00 strike call (ratio of 1) Sell to open: BAC Nov 17th (monthly) 29.00 strike call (ratio of 4) Debit: 0.16 – this order is still pending We own 200 shares of DIS, adding the following if it can get filled: Buy to open: DIS Nov 17th (monthly) 87.00 strike call (ratio of 1) Sell to open: DIS Nov 17th (monthly) 92.00 strike call (ratio of 2) Debit: 0.45 – this order is still pending We own 300 shares of EFA, adding the following if it can get filled: Buy to open: EFA Nov 17th (monthly) 68.00 strike call (ratio of 1) Sell to open: EFA Nov 17th (monthly) 71.00 strike call (ratio of 4) Debit: 0.43 – this order is still pending

Updates as we have arrived at October (monthly) options expiration today. JPM 1×2 put spread. This is probably the only trade moving into expiration that will need adjustment/exit today. We have already made the daily ATR move today in the stock. So we could set the lows and then bounce back a little bit later today. Probably won’t land perfectly at 145/share but that was never the expectation. Here is our gameplan: We are waiting until very late in the trading session (maybe 15 minutes before the close) Then we will place an order as follows: Buy to close: JPM Oct 20th (monthly) 145.00 strike put (ratio of 1) Debit: whatever the going price is at that time This will close the trade and assuming we haven’t plunged down to 140/share we will have some profit. If the stock were to stage a big recovery back up toward 145/share (unlikely), then we would manage this trade differently and send out another update. Assuming it is well below 145/share, we will follow the game plan above. The following trades will expire (most of them profitably): SNOW 180.00 strike covered call DELL 70.00 strike covered call NEM 52.50 strike covered call NEM 45.00 strike covered call VMEO 7.50 strike covered call GOLD 18.00 strike covered call DKNG 35.00 strike covered call CVS 75.00 strike covered call Z 55.00 strike covered call Z 52.00 strike covered call OXY 72.50 strike covered call OXY 67.00 strike covered call TGT 115.00 strike covered call DIS 87.00 strike covered call BRKB 375.00 strike covered call GM 1×2 call spread EFA 1×4 call spread VZ short call and short put We are making no adjustment with the following short puts and will receive shares: DELL Oct 67.50 strike put Z Oct 45.00 strike put MTCH Oct 40.00 strike put

We canceled the order to add to our JPM short stock hedge. And we removed the current position for a small loss. Bought to cover: JPM 25 shares at 146.38 This order has filled and realizes a total loss of -$15.00 total All other orders including the stop loss should be canceled

We have a pending limit order to short 25 more shares of JPM at 146.78 Adjusting our stop-loss to 50 shares total if filled