Author: Bryan Halliday

We entered into long GLD and short QQQ as a sort of pairs trade. We got stopped out of GLD for a loss of -$44.45 but we just took profits on QQQ and made a profit of +$156.45. So the pairs trade worked well overall. Buy to cover: QQQ 35 shares at $377.58 per share The result is a profit of +$156.45 In addition, we rolled-in one of our covered calls in CVS as follows: Buy to close: CVS Sep 15th (monthly) 77.50 strike call Sell to open: CVS Aug 18th (monthly) 77.50 strike call Debit: 0.70 This will allow the August option to expire earlier, then we will be able to sell another call at a later date further OTM in strike price. We think this gives us a better position overall.

This is our 2nd newsletter today. We have adjusted our Snowflake (SNOW) 1×2 put spread. We are removing two of the legs and leaving the lower strike put naked. This is a “bullish” adjustment because if the stock continues lower, we would be better off with the 1×2 put spread than the naked put position. But we are willing to own the 100 shares (we recently sold). And that is our primary motivation. Sell to close:  SNOW Aug 18th (monthly) 180.00 strike put (ratio of 1) Buy to close: SNOW Aug 18th (monthly) 160.00 strike put (ratio of 1) – this leaves 1 of the 160 puts naked Credit: 9.70 – this order has filled This locks-in +$700.00 in the put spread but requires us to buy 100 shares at 160/share if the stock is below that price at expiration. We bought a few month out in time put butterfly in Square (SQ). Buy to open: SQ Dec 15th (monthly) 70.00 strike put (ratio of 1) Sell to open: SQ Dec 15th (monthly) 60.00 strike put (ratio of 2) Buy to open: SQ Dec 15th (monthly) 50.00 strike put (ratio of 1) Debit: 1.30 – this is still a pending order Max risk = 1.30 or $130.00 per spread Max reward = 8.70 or $870.00 per spread

A couple of new short-term stock trades in QQQ and GLD. Sold short: QQQ 35 shares at 382.05 Buy to cover stop-loss above at 385.16 gtc (good til canceled order) Bought: GLD 35 shares at 181.50 Sell stop-loss below at 180.24 gtc (good til canceled order)

 

We added a 1×2 put spread in Disney (DIS). This would require us to buy 100 shares more if the stock makes a sharp move lower. Something that we are willing to do. If you are NOT willing, then perhaps a butterfly or some alternative or simply skip the trade. The company reports earnings before this expiration date. Buy to open: DIS Aug 18th (monthly) 86.00 strike put (ratio of 1) Sell to open: DIS Aug 18th (monthly) 81.00 strike put (ratio of 2) Debit: 0.78 – this order has filled Probable risk = 0.78 or $78.00 Max reward = 4.22 or $422.00 Max Risk = Owning 100 shares of stock at a cost basis of 76.78 (losses grow below this price)We have also added a very short-term Aug 1st expiration (5 day trade) in QQQ. Details as follows: Buy to open: QQQ Aug 1st (weekly) 384.00 strike put (ratio of 1) Sell to open: QQQ Aug 1st (weekly) 378.00 strike put (ratio of 2) Buy to open: QQQ Aug 1st (weekly) 372.00 strike put (ratio of 1) Debit: 1.25 – this order is still pending, if we don’t get filled today it is to be canceled going forward Max risk = 1.25 or $125.00 per spread Max risk = 4.75 or $475.00 per spread

 

 

We rolled up our short call in GM as follows: Buy to close: GM Aug 18th (monthly) 37.00 strike call Sell to open: GM Aug 18th (monthly) 39.00 strike call Debit: 0.98

 

 

We took profits on our QQQ short stock position this morning. This has worked out, we would love to re-initiate at higher prices. Buy to cover: QQQ all 35 shares at 377.22 The result is a profit of +$276.85We are also closing our SPY July 28th (weekly) put butterfly early. When the FOMC meeting comes out, barring a really big drop in the market, we lose in multiple ways. The volatility will collapse and the price of our butterfly right along with it. So, there are too many factors stacked against us. Sell to close:  SPY July 28th (weekly) 453.00 strike put (ratio of 1) Buy to close: SPY July 28th (weekly) 445.00 strike put (ratio of 2) Sell to close:  SPY July 28th (weekly) 4437.00 strike put (ratio of 1) Credit:  1.02 The result is a loss of -$32.00

 

We are adding multiple bearish hedges/trades as follows: Sold short: QQQ 35 shares at 385.13 Buy to cover stop-loss above at 389.87 gtc (good til canceled) Bought a put spread in Z as follows Buy to open:  Z Sep 15th (monthly) 55.00 strike put Sell to open:  Z Sep 15th (monthly) 45.00 strike put Debit: 3.15 Max risk = 3.15 or $315.00 per spread Max reward = 6.85 or $685.00 per spread Bought a put spread in CVX as follows Buy to open:  CVX Sep 15th (monthly) 150.00 strike put Sell to open:  CVX Sep 15th (monthly) 140.00 strike put Debit: 2.27 Max risk = 2.27 or $227.00 per spread Max reward = 7.73 or $773.00 per spread Bought a put butterfly in SPY as follows Buy to open:  SPY July 28th (weekly) 453.00 strike put (ratio of 1) Sell to open:  SPY July 28th (weekly) 445.00 strike put (ratio of 2) Buy to open:  SPY July 28th (weekly) 437.00 strike put (ratio of 1) Debit: 1.34 Max risk = 1.34 or $134.00 per spread Max reward = 6.66 or $666.00 per spread

This is our 2nd newsletter today. We are closing 1/2 of our position in Snowflake (SNOW). Ideally, we will be able to repurchase those shares on downside price action in the coming weeks/months ahead. Sold: 100 shares of our SNOW position at 190.60 Buy to close: SNOW Aug 18th (monthly) 200.00 strike call Debit: 7.70 We then added a 1×2 put spread in SNOW, this could require the repurchase of those 100 shares Buy to open: SNOW Aug 18th (monthly) 180.00 strike put (ratio of 1) Sell to open: SNOW Aug 18th (monthly) 160.00 strike put (ratio of 2) Debit: 2.70 Risk = 2.70 or $270.00 per spread if SNOW is above 180/share Max risk = owning 100 shares at a 142.70 cost basis Max reward = 17.30 or $1,730.00 per spread