December 26, 2018 Terry’s Tips Trade Alert #3 – Honey Badger Portfolio

Our earlier trades left us with $5 coverage to the upside, and now the stock has moved up over $6.  We need to adjust our short puts to higher strikes to make us a little less negative net delta in case SPY continues to climb:

BTC 1 SPY 28Dec18 230 put (SPY181228P230)
STO 1 SPY 28Dec18 246 put (SPY181228P246) for a credit of $5.11 (selling a vertical)

BTC 1 SPY 28Dec18 237 put (SPY181228P237)
STO 1 SPY 28Dec18 245 put (SPY181228P245) for a credit of $3.50 (selling a vertical)

BTO 1 SPY 15Mar19 242 put (SPY190315P242)

STO 1 SPY 28Dec18 242 put (SPY181228P242) for a debit of $7.90 (buying a calendar) 

Be prepared to change these price limits by $.05 or more in order to get an execution.

Happy trading.

Terry