Trade Alert 1/5/2026

Energy stocks are up this morning on the Venezuelan invasion. We have used this to take profits on 1/2 of our butterfly call spreads. These options were split along with the stock split that happened some weeks ago. After the split, our position went from 3 contracts to 6 contracts of the butterfly. Our cost went from 1.15 per spread to 0.575 per spread. And our strike prices were cut in half. We will discuss this position in class in a few minutes. Sell to close:  XLE Jan 16th (monthly) 46.00 strike call (ratio of 1) Buy to close: XLE Jan 16th (monthly) 48.50 strike call (ratio of 2) Sell to close:  XLE Jan 16th (monthly) 51.00 strike call (ratio of 1) Credit:  0.82 Profit of $0.25 per spread