March 11, 2020 Terry’s Tips Trade Alert – Rising Tide Portfolio

Delta has become uncomfortably high, though COST is not down as much as the broader market today. We will lower a few strikes to increase theta:

BTC 1 COST 13Mar20 315 call (COST200313C315)
STO 1 COST 13Mar20 305 call (COST200313C305) for a credit of $3.65 (selling a vertical)

BTO 2 COST 17Apr20 315 calls (COST200417C315)
STC 2 COST 17Apr20 325 calls (COST200417C325) for a debit of $4.15 (buying a vertical)

BTC 1 COST 13Mar20 310 put (COST200313P310)
STO 1 COST 13Mar20 302.5 put (COST200313P302.5) for a debit of $4.15 (buying a vertical)

BTO 1 COST 17Apr20 310 put (COST200417P310)
STC 1 COST 17Apr20 315 put (COST200417P315) for a credit of $2.55 (selling a vertical)

BTC 1 COST 13Mar20 312.5 call (COST200313C312.5)
STO 1 COST 13Mar20 302.5 call (COST200313C302.5) for a credit of $4.20 (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