MoneyTalk – New trading ideas from Phil Davis
Phil discusses the performance of the Money Talk portfolio, which is up 327% overall. He then presents two new trades for the portfolio.
Here’s a concise timeline and summary of the interview clip:
Timeline:
- 0:00 – Introduction and discussion of Money Talk portfolio performance
- 1:00 – First trade: Pfizer (PFE) options strategy
- 4:00 – Second trade: Chimera Investment Corporation (CIM) stock and options strategy
- 5:40 – Discussion of risks
- Pfizer (PFE): Sell 10 $30 puts expiring in 2026 for $5.25 each and use the proceeds to buy 25 $22.50/$30 call spreads expiring in 2026. This trade has a potential upside of 435% if Pfizer reaches $30 by expiration.
2. Chimera Investment Corporation (CIM): Buy 5,000 shares at the current price of $4.49 and sell 50 $5 puts expiring in 2025 for $1 each. Additionally, sell 50 $5 calls expiring in 2025 for $0.32 each. The primary risk is owning 10,000 shares at an average price of $4.08 per share.
Phil notes that these trades are suitable for investors with portfolio margin accounts of $100,000 or more and cautions against over-margining. He also notes that the risks are somewhat mitigated by the fundamental strength of the companies.
