Today in class we discussed this week’s options expiration. We reviewed all of our December expiration trades and those most likely to need an adjustment (DKNG, DELL & SNOW). We also adjusted our ITM covered LEAPS trade in VZ. And finally got filled on covered calls in TMUS and WBA which we had tried to sell a couple of weeks ago. The details are as follows: Rolled out and up on our VZ covered leaps short calls as follows:
Buy to close: VZ Dec 15th (monthly) 37.00 strike call
Sell to open: VZ Jan 19th (monthly) 39.00 strike call
Debit: 0.51Â – this order has been filledSold covered calls on TMUS and WBA after having not been filled previously.
Sell to open: TMUS Jan 19th (monthly) 170.00 strike call
Credit: 0.57Â – this order has been filled
Sell to open: WBA Jan 19th (monthly) 27.50 strike call
Credit: 0.38Â – this order has been filledWe added a new trade that was not discussed live in class. Bought a call butterfly in BABA as follows:
Buy to open: BABA Feb 16th (monthly) 75.00 strike call (ratio of 1)
Sell to open: BABA Feb 16th (monthly) 85.00 strike call (ratio of 2)
Buy to open: BABA Feb 16th (monthly) 95.00 strike call (ratio of 1)
Debit: 1.30
Max risk = 1.30 or $130.00 per spread
Max reward = 8.70 or $870.00 per spread