We have arrived at February monthly options expiration. There was not a further decline into the expiration as was possible by the setup. Instead, the consolidation from the start of this year has held in place. As such, we are removing our SPY and QQQ positions. There is a small profit overall from trading these. In addition, we have some other options expiration positions to update/adjust as shown below.
Sell to close: SPY April 17th (monthly) 670.00 strike put (ratio of 1)
Buy to close: SPY April 17th (monthly) 640.00 strike put (ratio of 2)
Sell to close: SPY April 17th (monthly) 610.00 strike put (ratio of 1)
Credit: 2.33
Considering the prior exit, we made +$120 total across our original 3 contract position (+0.40 per contract).
Sell to close: QQQ May 15th (monthly) 580.00 strike put (ratio of 1)
Buy to close: QQQ May 15th (monthly) 550.00 strike put (ratio of 2)
Sell to close: QQQ May 15th (monthly) 520.00 strike put (ratio of 1)
Credit: 2.18
Loss of -0.21 or -$21.00 total in the trade.
We have had 200 shares of PYPL delivered to our account. We already sold a covered call early that expires today Feb 47 strike calls. We will move ahead and sell a couple more as follows:
Sell to open: PYPL April 17th (monthly) 47.50 strike call
Credit: 0.74
We took in +$54.00 of income from the Feb cc’s and this +$148 of income from the April cc’s and used it to buy 5 more shares of PYPL at 41.82 (we also used the tiny bit left over from TSSI because we were a couple of bucks short).
We will have 100 shares of TSSI delivered to our account this weekend (highly speculative stock).
We went ahead and sold a covered call early as follows:
Sell to open: TSSI April 17th (monthly) 12.50 strike call
Credit: 0.62
We took the +$62.00 of income and bought 7 more shares of the stock at 7.97/share (we had a couple bucks left over used to buy the extra PYPL share)
We paused our automated investment in PYPL in the Robinhood account. We turned on an automated investment in OXY in its place.
Our Cash Secured Put (naked put) in CCJ expires this weekend. We have replaced it with a short-term 1×2 put spread.
Buy to open: CCJ March 20th (monthly) 110.00 strike put (ratio of 1)
Sell to open: CCJ March 20th (monthly) 100.00 strike put (ratio of 2)
Debit: 0.52
Probable risk = 0.52 or $52.00 per spread
Max risk = owning 100 shares at a cost basis of 90.52/share
Max reward = 9.48 or $948.00 per spread
Our Cash Secured Put (naked put) in DELL expires this weekend. We have a pending order to replace it.
Sell to open: DELL April 17th (monthly) 100.00 strike put
Credit: 3.05 – still a pending order (has not filled)
Day order only – we will discuss on Monday
If the order does get filled, max risk = owning 100 shares at a 96.95 cost basis