Today we discussed sectorspdrs.com and how to look up what stocks make up the various sectors of the S&P 500. In addition, we discussed liquidity and its importance in trading options. Finally, we also made a few changes to the portfolio. We rolled up and in on our INTC covered call and exited the protective put. We bought a new butterfly spread in SNAP. All of the details are shown below:
Rolled up and in our INTC covered call as follows:
Buy to close: INTC Aug 16th (monthly) 35.00 strike call
Buy to close: INTC July 19th (monthly) 36.00 strike call
Debit: 1.21
Sold our long put in INTC as follows:
Sell to close: INTC Sep 20th (monthly) 30.00 strike put
Credit: 0.86
Entered into a call butterfly spread in SNAP as follows:
Buy to open: SNAP Sep 20th (monthly) 17.00 strike call (ratio of 1)
Sell to open: SNAP Sep 20th (monthly) 20.00 strike call (ratio of 2)
Buy to open: SNAP Sep 20th (monthly) 23.00 strike call (ratio of 1)
Debit: 0.45
Max risk = 0.45 or $45.00 per spread
Max reward = 2.55 or $255.00 per spread