December 1, 2020 Terry’s Tips Trade Alert - Rising Tide Portfolio

COST’s $10 dividend is now on the books. All strikes were adjusted 10 points lower overnight to offset the stock price drop. These trades will raise delta, start rolling out to earnings week and add theta:

BTC 1 COST 04Dec20 367.5 put (COST201204P367.5)
STO 1 COST 11Dec20 380 put (COST201211P380) for a credit of $4.75 (selling a diagonal) (100%)

BTO 1 COST 15Jan21 380 put (COST210115P380)
STC 1 COST 15Jan21 365 put (COST210115P365) for a debit of $4.50 (buying a vertical) (100%)


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

Happy trading.

Terry