January 31, 2020 Terry’s Tips Trade Alert – Honey Badger Portfolio

We need to reduce delta and add theta by rolling down some short put strikes:

BTC 1 COST 07Feb20 315 put (COST200207P315)
STO 1 COST 06Mar20 307.5 put (COST200306P307.5) for a debit of $1.25 (selling a diagonal)

BTC 1 COST 07Feb20 312.5 put (COST200207P312.5)
STO 1 COST 07Feb20 305 put (COST200207P305) for a debit of $4.95 (buying a vertical)

BTC 1 COST 07Feb20 310 put (COST200207P310)
STO 1 COST 07Feb20 302.5 put (COST200207P302.5) for a debit of $4.15 (buying a vertical)

BTO 1 COST 17Jul20 300 put (COST200717P300)
STC 1 COST 17Jul20 315 put (COST200717P315) for a credit of $7.25 (selling a vertical)

BTO 1 COST 17Jul20 305 put (COST200717P305)
STC 1 COST 17Jul20 315 put (COST200717P315) for a credit of $5.10 (selling a vertical)


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

Happy trading.

Terry