December 11, 2019 Terry’s Tips Trade Alert – Earnings Eagle   Portfolio

February options are now available, and they would have been our choice for the long side of our calendar spreads had they been available last week.  We will use up most of our free cash to add these spreads using the February longs as an experiment for our earnings strategy:

BTO 1 COST 21Feb20 290 put (COST200221P290)
STO 1 COST 13Dec19 290 put (COST191213P290) for a debit of $5.38 (buying a calendar)

BTO 1 COST 21Feb20 295 put (COST200221P295)
STO 1 COST 13Dec19 295 put (COST191213P295) for a debit of $5.41 (buying a calendar)

BTO 1 COST 21Feb20 300 call (COST200221C300)
STO 1 COST 13Dec19 300 call (COST191213C300) for a debit of $5.58 (buying a calendar)

Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution.

Happy trading.

Terry