September 25, 2020 Terry’s Tips Trade Alert - Rising Tide Portfolio

COST is down 2.6% after earnings. We can close our highest-strike call spreads to increase theta and reduce delta:

BTC 1 COST 25Sep20 357.5 call (COST200925C357.5)
STC 1 COST 30Oct20 357.5 call (COST201030C357.5) for a credit of $4.60 (selling a calendar)

BTC 1 COST 25Sep20 355 call (COST200925C355)
STC 1 COST 30Oct20 355 call (COST201030C355) for a credit of $5.10 (selling a calendar)

BTC 1 COST 25Sep20 352.5 call (COST200925C352.5)
STC 1 COST 30Oct20 352.5 call (COST201030C352.5) for a credit of $5.70 (selling a calendar)


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

Happy trading.

Terry