May 18, 2018 Terry’s Tips Trade Alert – Honey Badger Portfolio

The stock fell about 4 times the historical average post-announcement change, and in the wrong direction for us.  We will try to turn our current loss to a profit over the next few weeks by selling short-term premium:

BTC 2 AMAT 18May18 54 puts (AMAT180518P54)
STO 2 AMAT 25May18 51 puts (AMAT180525P51) for a debit of $2.33 (selling a diagonal)

BTC 2 AMAT 18May18 56 calls (AMAT180518P56) for $.01 (no commission)

BTO 2 AMAT 29Jun18 51 calls (AMAT189629C51)
STO2 AMAT 25May18 51 calls (AMAT180525P51) for a debit of $1.24 (buying a calendar)    

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

Happy trading.

Terry