We have been patiently waiting for more opportunities to add to our long-term investments. We have added to two (2) of them today. This takes our current available cash level down to $1,535 so we will likely hold off for a while and let the cash build up before adding more investments for a few weeks. The details are as follows:
Bought 50 more shares of OXY at 50.55
Bought 20 more shares of NUE at 134.95
In addition to these purchases. We have bought a 1×2 call spread against our OXY shares. This is 1×2 is a “covered” position because we own 100 shares of the stock after today’s purchase.
Buy to open: OXY Nov 15th (monthly) 52.50 strike call (ratio of 1)
Sell to open: OXY Nov 15th (monthly) 57.50 strike call (ratio of 2)
Debit: 0.77
Max risk = 0.77 or $77.00 per spread
Max reward = 4.23 or $423.00 per spread
If the stock rebounds, this essentially adds more upside to our current stock position.