Trade Findings and Adjustments 06-03-2020

Trade Findings and Adjustments 06-03-2020

What is the new narrative today?

Why have I been trading options the way I have for the past year or more?

During a historic bull run why the heck would you cap yourself to the upside

BUT Kevin You’re rarely if ever in the indexes = 83% of stocks follow the index



My ideal trade is collar trade, get called out and then convert the profits to leap long call replacement strategy = Protects initial investment capital


JPM – 400 shares @ 98.59

Short call on 300 shares for $3.22 credit obligated to sell at $120

Profit would equal 120-98.59+3.22 = $24.63 per share

Current puts = 24.63 – 4.40 + 1.78 = overall profit of $22.01

I would buy the $115 Jan 22 Leap long calls for $11.05 = 6 contracts costing me $0.045 per contract for 597 days


So why don’t you use more long puts against the leaps?

IF I added long puts it wold have cost me $4.40 or 40% of the cost basis on my leap

I personally would rather spend that money on dollar cost averaging

11 + 4.40 = 15.40 / 2 = $7.90


Leap Long Call Jan 22 $260 Strike for $31.50



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