We will discuss the adjustment below live in class at 10:00 am EST today!
In this program (Trading Mentors), we only use the cash we have available. We let it build up at times and then utilize it when we see an opportunity. We had used all of our currently available funds to purchase Berkshire (BRK/B) shares last week. We will need those funds now to build our NUE position as it is moving toward the covered call strike price of 145.00 (we are 50 shares naked). In addition, we suspect that NUE will trigger an RSI above 70 today and move into “over drive” and may speed up further. So, in order to raise funds, we sold 10 of our BRK/B shares and purchased 30 shares of NUE as follows:
Sold: BRK/B 10 shares at 472.19
Bought: NUE 30 shares at 138.44