October 7, 2019  Terrys Tips Trade Alert – Earnings Eagle  Portfolio

A full explanation of the strategy we are using with these trades will come in this week’s Saturday Report.  UAL announces earnings on October 15 after the close.  The long side of these calendar spreads will expire shortly after UAL’s next earnings report.  The value of those options just prior to that time should be almost equal to what we are paying for these spreads, and we will have at least 12 weekly opportunities to sell premium while we are waiting for that time to elapse.  Of course, wild fluctuations could occur after next week’s announcement, and we might end up with different strikes for some of the spreads.  The strategy we are using here is quite similar to how we recently set up the Honey Badger portfolio.  In that one, we gained 25% in the first week:

BTO 1 UAL 17Jan20 80 put (UAL200117P80)
STO 1 UAL 18Oct19 80 put (UAL191018P80) for a debit of $2.17  (buying a calendar)

BTO 1 UAL 17Jan20 82.5 put (UAL200117P82.5)
STO 1 UAL 18Oct19 82.5 put (UAL191018P82.5) for a debit of $2.42  (buying a calendar)

BTO 1 UAL 17Jan20 85 put (UAL200117P85)
STO 1 UAL 11Oct19 85 put (UAL191011P85) for a debit of $3.81  (buying a calendar)

BTO 1 UAL 17Jan20 85 call (UAL200117C85)
STO 1 UAL 11Oct19 85 call (UAL191011C85) for a debit of $4.21  (buying a calendar)

BTO 1 UAL 17Jan20 87.5 call (UAL200117C87.5)
STO 1 UAL 18Oct19 87.5 call (UAL191018C87.5) for a debit of $2.72  (buying a calendar)

BTO 1 UAL 17Jan20 90 call (UAL200117C90)
STO 1 UAL 18Oct19 90 call (UAL191018C90) for a debit of $2.40  (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