Some major changes to the portfolio today. We are going to do a little bit of spring cleaning. When a company we own has started to be more challenged fundamentally than expected, an approach we will utilize is to sell that stock but buy something else within the sector (or even the sector ETF). That way we still have exposure to that sector of the market. But we are better positioned to have our capital perform well. We are doing that in a couple of instances today. We have sold our entire position in Intel (INTC) stock for 23.95 on the new CEO news bounce. We also bought back the covered call.
Buy to close: INTC March 21st (monthly) 27.50 strike call
Debit: 0.20We have sold our entire position in Apache (APA) stock for 19.76.We hedged our covered call through buying a lower strike call for 0.01.
Buy to open: APA March 21st (monthly) 25.00 strike call
Debit: 0.01
This 25.00 strike call covers our short 27.50 strike call. And since they both cost 0.01, it is better to buy the 25 call then to close our 27.50 call back. Gives us a tiny chance at a profit if the stock were to sky rocket (unlikely but still a chance).We used the capital received from selling INTC to buy 300 more shares of SNAP. In addition, we sold covered calls.
Bought 300 shares of SNAP at 8.65
Sold to open: SNAP April 17th (monthly) 10.00 strike call
Credit: 0.23We used the capital received from selling APA to buy 50 more shares of EQT. In addition, we sold a covered call. This covered call is partially naked as we will only own 50 shares to cover the 100 share promise.
Bought 50 shares of EQT at 48.57
Sold to open: EQT March 21st (monthly) 51.00 strike call
Credit: 0.50After the adjustments today. We own 150 shares of EQT and 500 shares of SNAP.