April 30, 2020 Terry’s Tips Trade Alert – Wiley Wolf Portfolio

With MSFT showing little movement after earnings, the value of our short positions has fallen rapidly with the drop in volatility. We can now start rolling out these positions four weeks and raise strikes to increase delta. We’ll start with the lowest strikes that have little remaining theta:
 
BTC 2 MSFT 01May20 167.5 puts (MSFT200501P167.5)
STO 2 MSFT 29May20 172.5 puts (MSFT200529P172.5) for a credit of $3.80 (selling a diagonal)

BTC 2 MSFT 01May20 172.5 calls (MSFT200501C172.5)
STO 2 MSFT 29May20 180 calls (MSFT200529C180) for a debit of $1.30 (selling a diagonal)


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

Happy trading.

Terry