Hello Investors,
We are in a cycle where certain sectors are making huge moves higher. While the S&P and especially the Nasdaq (Tech) is stuck in the mud. Because we own a lot of the best stocks, they are moving in some cases above our short strikes. So, we are in “adjustment” mode. With Chevron (CVX) we added a 1×2 put spread. This improves our trade in almost any situation with the exception of a big move lower. It likely means an extra +$170 of profit. However, it could improve our trade by up to $420 total.
The trade is as follows:
Buy to open: CVX Dec 18th (monthly) 95.00 strike puts (ratio of 1)
Sell to open: CVX Dec 18th (monthly) 92.50 strike puts (ratio of 2)
Credit: 1.70
We also resold covered calls in EEM and TMUS.
Sell to open: EEM Jan 15th (monthly) 53.00 strike call
Credit: 0.20
Sell to open: TMUS Jan 15th (monthly) 150.00 strike call
Credit: 0.29
Have a great week!