Hello Investors,
Not much happening in the way of options expiration. Most of our trades will expire for a full profit of the credit received. We are taking ownership on another 100 shares of BAC this weekend from a naked put. We could buy that put back at a profit but we like the position. We are being “called out” of 100 shares of our LB stock. We bought those shares lower as a “trade” rather than increasing our investment size. That has worked out nicely.
We had planned two new “trades” to take today. XLE and QQQ. The trade in XLE we got filled on. We bought OTM speculative call butterfly spreads with September expiration. In the case of QQQ, the trade didn’t make sense so we decided to pass on it for now.
Buy to open: XLE Sep 18th (monthly) 40.00 strike calls (ratio of 1)
Sell to open: XLE Sep 18th (monthly) 45.00 strike calls (ratio of 2)
Buy to open: XLE Sep 18th (monthly) 50.21 strike calls (ratio of 1) – notice the adjusted strike price of 50.21
We bought two contracts and paid 0.72 and 0.73 respectively.
Have a great weekend!