Trade Alert 7/28/2023 #2

This is our 2nd newsletter today. We have adjusted our Snowflake (SNOW) 1×2 put spread. We are removing two of the legs and leaving the lower strike put naked. This is a “bullish” adjustment because if the stock continues lower, we would be better off with the 1×2 put spread than the naked put position. But we are willing to own the 100 shares (we recently sold). And that is our primary motivation. Sell to close:  SNOW Aug 18th (monthly) 180.00 strike put (ratio of 1) Buy to close: SNOW Aug 18th (monthly) 160.00 strike put (ratio of 1) – this leaves 1 of the 160 puts naked Credit: 9.70 – this order has filled This locks-in +$700.00 in the put spread but requires us to buy 100 shares at 160/share if the stock is below that price at expiration. We bought a few month out in time put butterfly in Square (SQ). Buy to open: SQ Dec 15th (monthly) 70.00 strike put (ratio of 1) Sell to open: SQ Dec 15th (monthly) 60.00 strike put (ratio of 2) Buy to open: SQ Dec 15th (monthly) 50.00 strike put (ratio of 1) Debit: 1.30 – this is still a pending order Max risk = 1.30 or $130.00 per spread Max reward = 8.70 or $870.00 per spread