Hey, I finally found that Post where we discussed 9 Trade Ideas to Make $101,875 into Jan expirations. I thought it was a post but it was from our Sept 26th Chat and was sent out as a Top Trade Alert that day too. Keep in mind we were bearish and looking for a big pullback and the idea was to add these things to the LTP as an additional hedge. Let's see how they did - hopefully educational (all copied from the same comment). KEEP IN MIND THESE ARE NOT NEW TRADE IDEAS but I will make new adjustment red so they stand out:
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
That was easy money.
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.
So my bottom call at the time was $45-$5.30 ($39.70) and we took the spread, and sold the short-term calls, which are winners.
