Adding some holiday income (and hedges) for Q4 with a set that you can start a whole new portfolio with:
In the LTP, we have BBBY:
| Short Put | 2020 17-JAN 17.50 PUT [BBBY @ $19.09 $0.19] | -20 | 1/8/2018 | (478) | $-5,600 | $2.80 | $-0.14 | $-2.20 | $2.67 | $-0.18 | $270 | 4.8% | $-5,330 | ||
| Long Call | 2020 17-JAN 15.00 CALL [BBBY @ $19.09 $0.19] | 30 | 4/20/2018 | (478) | $13,950 | $4.65 | $1.15 | $5.80 | - | $3,450 | 24.7% | $17,400 | |||
| Short Call | 2020 17-JAN 22.50 CALL [BBBY @ $19.09 $0.19] | -10 | 4/20/2018 | (478) | $-2,200 | $2.20 | $0.25 | $2.45 | - | $-250 | -11.4% | $-2,450 |
Let's sell 20 of the BBBY Jan $20 calls for $1.50 ($3,000) in the LTP and also in the OOP
As a new trade on CAKE for the LTP:
- Sell 10 2021 $45 puts for $5.30 ($5,300)
- Buy 25 2021 $45 ($13.80)/$60 ($7) bull call spreads for $6.80 ($17,000)
- Sell 15 Jan $55 calls for $2.85 ($4,275)
That's net $7,425 on the $37,500 spread and we have 8 more quarters to sell.
In the LTP, our CMG position is:
| Short Call | 2019 18-JAN 460.00 CALL [CMG @ $465.60 $-0.02] | -20 | 8/27/2018 | (114) | $-123,600 | $61.80 | $-24.50 | $-139.69 | $37.30 | $-1.20 | $49,000 | 39.6% | $-74,600 | ||
| Long Call | 2020 17-JAN 460.00 CALL [CMG @ $465.60 $-0.02] | 20 | 8/27/2018 | (478) | $203,000 | $101.50 | $-22.55 | $78.95 | - | $-45,100 | -22.2% | $157,900 | |||
| Short Call | 2020 17-JAN 580.00 CALL [CMG @ $465.60 $-0.02] | -20 | 8/27/2018 | (478) | $-97,600 | $48.80 | $-14.60 | $34.20 | - | $29,200 | 29.9% | $-68,400 |
No change to that one but note that we have an $89,500 position (current net of the bull call spread) that pays $240,000 at $580 so massive $150,000 upside potential above $460 and we're collecting $74,600 (current price of short calls) over the next 3 months on the short calls.
