Trade Alert 10/6/2023

We are going to receive 100 shares of Target (TGT) stock this weekend from a short put. We have sold a covered call today against those shares as follows: Sell to open: TGT Oct 20th (monthly) 115.00 strike call Credit: 0.28 – this order has filled We have added a 1×2 put spread in JPMorgan Chase (JPM). This is aggressive because the company will report earnings before expiration hits. This would require us to buy 100 share of stock in 2-weeks if the stock moves sharply lower. We like the risk/reward/probability mix. The details as follows: Buy to open: JPM Oct 20th (monthly) 150.00 strike put (ratio of 1) Sell to open: JPM Oct 20th (monthly) 145.00 strike put (ratio of 2) Credit:  0.20 – this order has filled Max reward = 5.20 or $520.00 per spread Max risk = owning 100 shares at 139.80 cost basis We are looking to roll up our Disney (DIS) covered call as follows: Buy to close: DIS Oct 20th (monthly) 85.00 strike call Sell to open: DIS Oct 13th (weekly) 87.00 strike call Debit: 0.53 – this is a pending order We only own 20 shares of DKS. We are trying to add a 1×2 call spread today which is 80% “naked”. If the stock were to move sharply higher, we would need to buy 80 more shares to fully cover the trade. The details as follows: Buy to open: DKS Oct 20th (monthly) 105.00 strike call (ratio of 1) Sell to open: DKS Oct 20th (monthly) 110.00 strike call (ratio of 2) Debit: 0.80 – this is a pending order Max reward = 4.20 or $420.00 per spread Max risk = Unlimited on the upside because we are 80% “naked” 1 of the short calls