Author: Bryan Halliday

Hello Investors,

We are going to take a loss on our QQQ trade from yesterday. There are things happening today that are hard to explain. In these situations, you can get into a scenario where prices do some wacky and unexpected things. So, since this trade has a very large risk profile, we would like to simply take the smaller loss today. However, we are very likely to come back to a bearish strategy when the dust settles. This was not well timed but the loss is smaller in size given that we took a very conservative OTM bearish position. QQQ is exploding higher today as stocks like NFLX, FB and others surge today.

Buy to close: QQQ Sep 18th (monthly) 305.00 strike calls

Paid a debit of 1.85

In addition, we bought 3 more shares of CVX today at 85.17

Happy Trading!

Hello Investors,

A few changes following the end of August expiration this past weekend. Markets have broken out above resistance as expected. That is creating the short covering rally and push higher in prices. That also sets up for a full correction coming in the not too distant future (in our view) in the markets. So, we have a very high risk/high probability “naked call” trade in QQQ. This is the deep end of the pool and should be paper traded by any new traders that are not familiar with delta hedging and other risk mgt techniques.

Here is a list of the trades processed today:

Sell to open: QQQ Sep 18th (monthly) 305.00 strike calls for +0.70 credit

Hello Investors,

A few changes to the portfolio today as we have arrived at Aug 21st (monthly) options expiration.

We have had great success selling puts in BAC. The Aug puts are expiring today for a max gain. So, with it going away, we sold the Sep 18th (monthly) 23.00 strike puts for +0.30 (1 contract)

We also sold covered calls against our DELL shares. We sold the Sep 18th (monthly) 67.50 calls for +0.70 (2 contracts)

We have a nice profit having sold Aug puts in CVX that are expiring today for a max gain. So, with it going away, we sold the Oct 16th (monthly) 75.00 strike puts for +1.52 (1 contract)

We also moved our stop-loss down to breakeven in our short stock trade in GOLD. The stop-loss is now at 30.07/share.

We will make additional changes on Monday as needed to get back to 100 shares of BRK-B and to 200 shares of DELL as needed (based on how things exercise this weekend).

Have a great weekend!

Hello Investors,

A couple of changes today. With a discussion on the news of a Berkshire Hathaway investment into GOLD.

We closed out our “naked put” position in Draftkings (DKNG). The position has worked out perfectly.

Buy to close: DKNG Nov 20th (monthly) 25.00 strike puts

We entered a new short stock trade in GOLD. We shorted the stock at 30.07 with a GTC stop loss above at 32.07.

Happy Trading!

Hello Investors,

A few changes to the portfolio today.

We sold a covered call against our 100 shares of TMUS owned.

Sold to open: TMUS Sep 18th (monthly) 125.00 strike calls

Credit: 1.50

We want to take profits on BAC Calendar Call Spread

Sell to close: BAC Jan 15th (monthly) 26.00 calls

Buy to close: BAC Aug 21st (monthly) 26.00 calls

Credit: 1.75

Finally, we are buying 5 shares of GILD. This is a strong fundamental story and we will start a small position. This has nothing to do with the Covid treatment drug as that is an after thought. The company minus that drug, is worth the investment in our view.

Have a great weekend!

Hello Investors,

We entered into a new position today. This is a covered call trade. We think the upside profit potential from now until September 18th is interesting. The details are as follows:

New Trade Idea: AIG Covered Call

Buy 100 shares of AIG

Sold to open: AIG Sep 18th 36.00 strike call

Limit debit: 29.94

Max reward = 6.06 or $606.00

Max risk = Unlimited in the stock down to zero

Here is a screenshot of the order:

Hello Investors,

Today we did a class on trading outlooks. We like to classify them from +3 (very bullish) through to -3 (very bearish). We entered into a new trade today in Royal Caribbean (RCL). It would fall in the -2 category based on the construction. In addition, we discussed how to trade put ratio backspreads.

New Trade:

Royal Caribbean (RCL) Put Butterfly

Buy to open: RCL Sep 18th (monthly) 45.00 strike puts (ratio of 1)

Sell to open: RCL Sep 18th (monthly) 35.00 strike puts (ratio of 2)

Buy to open: RCL Sep 18th (monthly) 25.00 strike puts (ratio of 1)

Limit debit: 1.86

Max risk = 1.86; Max reward = 8.14

Have a great week!

Hello Investors,

Another adjustment today. We bought 40 more shares of EFA which completes the full 100 share position. The U.S. Dollar has begun a more significant downward slide. That move should improve the fundamentals for international markets in the months ahead. It is also a big driver for why precious metals have spiked recently. In addition, to the final stock purchase we sold a covered call for income. The details are as follows:

Bought: EFA – 40 more shares at 62.63 per share

Sold to open: EFA Sep 18th (monthly) 66.00 strike calls

Credit: 0.48

Have a great weekend!