I want to see how the day goes before we start adjusting things so, for now, I'm going to work on new Watch List items but I'll do them here and combine the list later:
BRK.B (2/6/18) - A great proxy for the S&P and way down from highs of $215 to $198. You can sell the 2020 $165 puts for $9.50 and that nets you in for $155.50, which is a very fair price for them so let's sell 5 of those in the LTP for $4,750.
SEE (2/6/18) - is a fun one when they get cheap. They make bubble wrap and who doesn't love bubble wrap? If you like AMZN why wouldn't you like packing materials but they just dropped 10% for no particular reason and we can sell 5 2020 $42 puts for $4 ($2,000) in the LTP and that nets us in for $38 on 500 shares so let's do that!
CG (2/18/06) - Is very interesting back at $23.25 as they have great options pricing. The Sept $22.50 puts can be sold for $2.75 and that's great as a stand-alone play to net in for $19.75 but you can pair 5 short puts ($1,375) with 10 of the June $20 ($4)/22.50 ($2.10) bull call spreads at $1.90 ($1,900) and that puts you in the $2,500 spread for net $525 with a $1,975 (376% upside). Let's add that to the OOP.
F (2/6/18) - Finally it's time to buy Ford and, since they pay an 0.60 dividend on a $10.47 stock, it's worth buying the stock so we'll add them to the OOP and the LTP:
In the OOP:
- Buy 1,500 shares F at $10.47 ($15,705)
- Sell 15 2020 $9.87 calls for $1.75 ($2,625)
- Sell 10 2020 $11.87 puts for $2.77 ($2,770)
That nets us into 1,500 shares of F at net $10,310 ($6.873) and it's a 50%(ish) profit if called away at $9.87 plus $1.20 in dividends is another 10+% so this simple trade is good for 30% per year and our worst case is owning 2,500 shares of F for $10,310 + $11,870 - $1,800 (dividends) would be net $20,380 or $8.152/share and, of course, if we don't want to own 2,500 shares at $8.152, why would we buy 1,500 shares for $10.47?
