March 25, 2020  Terry’s Tips Trade Alert  – Honey Badger  Portfolio

 

It seems that the market has determined that MSFT is one of the few companies that might benefit from the pandemic because more people will be using their cloud service, so we will want to be a little less negative net delta:

BTC 5 MSFT 27Mar20 125 puts (MSFT200327P125)
STC 5 MSFT 9Apr20 125 puts (MSFT200409P125) for a credit of $2,13 (selling a calendar)

BTO 5 MSFT 9Apr20 150 calls (MSFT200409C150)
STO 5 MSFT 27Mar20 150 calls (MSFT200327C150) for a debit of $3.72  (buying a calendar)

Be[Ta1]  prepared to change this (these) price limit(s) by $.05 or more in order to get an execution.

 

Happy trading.

Terry