February 24, 2020 Terry’s Tips Trade Alert – Wiley Wolf Portfolio

With the market cratering, we will buy back some deepest in-the-money short puts and roll down the remaining puts to lower delta and avoid assignment:

BTC 2 MSFT 28Feb20 180 put (MSFT200228P180)
STC 2 MSFT 18Sep20 180 put (MSFT200918P180) for a credit of $9.25 (selling a calendar)

BTC 2 MSFT 28Feb20 180 put (MSFT200228P180)
STO 2 MSFT 28Feb20 175 put (MSFT200228P175) for a debit of $3.20 (buying a vertical)

BTC 2 MSFT 28Feb20 177.5 puts (MSFT200228P177.5)
STO 2 MSFT 28Feb20 170 puts (MSFT200228P170) for a debit of $3.45 (buying a vertical)

BTC 1 MSFT 28Feb20 177.5 puts (MSFT200228P177.5)
STO 1 MSFT 28Feb20 172.5 puts (MSFT200228P172.5) for a debit of $2.60 (buying a vertical)


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

Happy trading.

Terry