March 12, 2020 Terry’s Tips Trade Alert – Rising Tide Portfolio

With COST down more than 5%, we need to reduce delta. We’ll start by lowering put strikes, which are deep in the money:

BTC 1 COST 13Mar20 307.5 put (COST200313P307.5)
STC 1 COST 17Apr20 305 put (COST200417P305) for a credit of $8.20 (selling a diagonal)

BTC 1 COST 13Mar20 307.5 put (COST200313P307.5)
STC 1 COST 17Apr20 310 put (COST200417P310) for a credit of $11.40 (selling a diagonal)

BTC 1 COST 13Mar20 305 put (COST200313P305)
STO 1 COST 13Mar20 285 put (COST200313P285)
BTO 1 COST 15May20 285 put (COST200515P285)
STC 1 COST 15May20 305 put (COST200515P305) for a debit of $5.10 (selling a vertical roll)

BTC 1 COST 13Mar20 302.5 put (COST200313P302.5)
STO 1 COST 13Mar20 282.5 put (COST200313P282.5)
BTO 1 COST 15May20 285 put (COST200515P285)
STC 1 COST 15May20 305 put (COST200515P305) for a debit of $4.25 (selling a vertical roll)

BTC 1 COST 13Mar20 300 put (COST200313P300)
STO 1 COST 13Mar20 280 put (COST200313P280)
BTO 1 COST 15May20 280 put (COST200515P280)
STC 1 COST 15May20 300 put (COST200515P300) for a debit of $3.70 (selling a vertical roll)


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

Happy trading.

Terry