Hello Investors,
Today we discussed a little about the Berkshire Hathaway annual meeting from over the weekend. Warren Buffett will step down as CEO at year-end. We talked about our 1×2 put spread in OXY and utilizing that strategy on the back of the Berkshire conference feeling as though a dip in the stock was likely. We also discussed our missed timing in “beta weighting” our portfolio. We got caught in a little bear trap and will need to work our way out of it. In this case, we have sold a short-term May put to offset some of our cost in the longer dated put.
Because we own 1 contract of the SPY Aug 15th (monthly) 578.00 strike puts
We sold a short-term May 538.00 strike put for income.
Sold to open: SPY May 16th (monthly) 538.00 strike put
Credit: 2.06
This $206.00 will be a small piece of income over the next couple of weeks as long as SPY closes above 538/share on May 16th expiration.
We will not have a live trading mentors meeting next Monday May 12th. We will be back live on Monday May 19th.
Have a great week!