We just passed August monthly options expiration so we have a huge amount of new covered calls/adjustments to make today. Here they are as follows: Covered calls expired on the following stocks and we resold additional calls as follows (make sure you own the stock before selling covered calls, it is possible you have a different quantity of shares than us):
Sold to open: BRKB Nov 17th (monthly) 380.00 strike calls
Credit: 2.90 – this order has been filledSold to open: TMUSÂ Nov 17th (monthly) 155.00 strike call
Credit: 1.01 – this order has been filledSold to open: CVSÂ Sep 15th (monthly) 70.00 strike call
Credit: 0.70 – this order has been filledSold to open: CVXÂ Sep 15th (monthly) 170.00 strike call
Credit: 1.00 – this order has been filledSold to open: ZÂ Oct 20th (monthly) 55.00 strike call
Credit: 1.92Â – this order has been filledSold to open: OXYÂ Oct 20th (monthly) 72.50 strike call
Credit: 0.65Â – this order has been filledSold to open: DKNGÂ Oct 20th (monthly) 35.00 strike calls
Credit: 0.30Â – this order has been filledWe own 300Â shares of BAC. We added the following 1×4Â call spread against those 300 shares as follows:
Buy to open: BAC Oct 20th (monthly) 30.00 strike call (ratio of 1)
Sell to open: BAC Oct 20th (monthly) 32.00 strike call (ratio of 4)
Credit: 0.37 – this order has been filled
Max risk = only risk is being “called away” at 32/share
Max reward = 2.37We own 200 shares of SNOW. 100 have a cc already. The other 100 are uncovered and we added the following 1×2 call spread against those 100 shares as follows:
Buy to open: SNOW Sep 15th (monthly) 160.00 strike call (ratio of 1)
Sell to open: SNOW Sep 15th (monthly) 180.00 strike call (ratio of 2)
Debit: 2.15Â – this order has been filled
Max risk = 2.15
Max reward = 17.85We own 100 shares of NEM and they already have a cc against them. Adding this 1×2 call spread does make that prior covered call “naked” but it is way OTM and we feel ok with it. If you don’t, then you could spend 0.05 and buy it back early.
Buy to open: NEMÂ Oct 20th (monthly) 40.00 strike call (ratio of 1)
Sell to open: NEMÂ Oct 20th (monthly) 45.00 strike call (ratio of 2)
Debit: 0.63Â – this order has been filled
Max risk = 0.63
Max reward = 4.37Finally we added two (2) new trades. BRK-B put butterflys act as an “insurance” of sorts. Then BABA is an advanced pending order. It will be a very long-term trade if we can get filled.
Buy to open: BRK-B Oct 20th (monthly) 345.00 strike put (ratio of 1)
Sell to open: BRK-B Oct 20th (monthly) 335.00 strike put (ratio of 2)
Buy to open: BRK-B Oct 20th (monthly) 325.00 strike put (ratio of 1)
Debit: 0.90Â – this order has been filled
Max risk = 0.90 or $90.00 per spread
Max reward = 9.10 or $910.00 per spreadBuy to open: BABA June 21st, 2024 (monthly) 100.00 strike call (ratio of 1)
Sell to open: BABA June 21st, 2024 (monthly) 120.00 strike call (ratio of 2)
Buy to open: BABA June 21st, 2024 (monthly) 140.00 strike call (ratio of 1)
Debit: 2.15Â – this order is still pending and may not hit our prices, in which case it will be canceled
Max risk = 2.15 or $215.00 per spread
Max reward = 17.85Â or $1,785.00 per spread