Hello Investors,
Today we had a discussion on calendar spreads and merger arbitrage. The Chevron (CVX) deal looks like a winner long-term. Our naked puts are likely to expire worthless in a few weeks but we may want to stick with that approach to the stock.
We added the following two positions.
Shorted 30 shares of QQQ stock with a stop loss above at 267.11 (good til canceled).
We entered into a call calendar spread in BAC.
Bought the Jan 15, 2021 – 26.00 strike calls
Sold the Aug 21, 2020 – 26.00 strike calls
Limit debit: 1.36
Have a great week!