Trade Alert 11/8/2023

We own 200 shares of SNOW and have two November covered calls. One of those is way up at the 200.00 strike price. That is way OTM and very very likely to expire worthless. However, that is not a guarantee. We are selling a new covered call in December to replace that covered call. However, we understand that this leaves that Nov 200 strike call “naked” through next Friday. If uncomfortable or unable to do naked calls, you could either buy the 200 strike call back. Or, an even smarter change would be to maybe buy the Nov 195 strike call for 0.01. If you can get the 195 for the same price as buying back your 200 strike call, that is a better option. Sell to open: SNOW Dec 15th (monthly) 190.00 strike call Credit:  2.53 This leaves the Nov 200 strike covered call “naked” through next week. See the details above. We took profits on our IWM call butterfly as follows: Sell to close: IWM Dec 29th (quarterly) 162.00 strike call (ratio of 1) Buy to close: IWM Dec 29th (quarterly) 172.00 strike call (ratio of 2) Sell to close: IWM Dec 29th (quarterly) 182.00 strike call (ratio of 1) Credit: 3.63 This locks-in a profit of +93.00 per spread.