SPY Trade Update: We have a bear call spread on in SPY. Importantly, we do NOT need to do anything with this trade. We are short the 545 calls and long the 550 calls. Regardless of whether you are still in the spread or if part of your spread was assigned early as it was for us (detailed below).
For us, the 545 calls were exercised early last night. Leaving us with a short -100 shares of SPY and still long the 550 calls. This amounts to the exact same risk/reward as if the 545 calls had not been exercised early. There is nothing required with this trade. Our 550 calls are ITM and will automatically exercise this weekend buying 100 shares of stock which will close the short stock position. The result is a max loss because the stock finished above both strikes at expiration.
APA Trade Update: The APA 27.50 strike put is ITM and we will assign us 100 shares of stock over the weekend. We do NOT need to do anything with this position and will receive the stock as planned. If you are not willing to own the stock, then “buy to close” the short put. This has worked out well for us as our cost basis overall is below current prices.
X Trade Update: We exited our stock position and replaced it with a 1×2 put spread last month. That has worked out well as it will allow us to buy back into the stock for better prices. The 1×2 put spread will assign us 100 shares this weekend as planned. If you do NOT want the shares, one would need to “buy to close” 1 of the short 40 strike puts and let the rest of the spread go through a same day substitution over the weekend.
SNAP Trade Update: We have a call butterfly spread in SNAP that will expire OTM and needs to adjustment. We ended up buying shares of the stock through a 1×2 put spread and that position is working well.
Covered Call Trade Update: We have covered calls in the following stocks that will expire OTM and need no adjustments.
CCJ – 55 and 60 strike calls
INTC – 24 and 38 strike callsBasically no adjustments are required with any of our position as long as one is willing to own the stocks through our short puts as planned. Have a great weekend!