April 29, 2020 Terry’s Tips Trade Alert – Wiley Wolf Portfolio

We have become negative net delta. We can raise the lowest call strike to increase delta to near neutral and add theta. We can also use our excess cash to buy another at-the-money calendar spread right before earnings tonight:
 
BTC 2 MSFT 01May20 170 calls (MSFT200501C170)
STO 2 MSFT 01May20 177.5 calls (MSFT200501C177.5)
BTO 2 MSFT 18Sep20 180 calls (MSFT200918C180)
STC 2 MSFT 18Sep20 170 calls (MSFT200918C170) for a credit of $1.00 (selling a vertical roll)

BTO 1 MSFT 17Jul20 175 put (MSFT200717P175)

STO 1 MSFT 01May20 175 put (MSFT200501P175) for a debit of $7.50 (buying a calendar)


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

Happy trading.

Terry