July 18, 2019 Terry’s Tips Trade Alert – Wiley Wolf Portfolio

The stock is down over $3 this week going into tonight’s earnings announcement.  We have become uncomfortably long (net delta is too high).  We need to roll to some lower strikes:

BTC 7 MSFT 19Jul19 140 calls (MSFT190719C140)
STC 7 MSFT 20Sep19 140 calls (MSFT190920C140) for a credit of $2.44 (selling a calendar)

BTO 4 MSFT 20Sep19 135 puts (MSFT190920P135)
STO 4 MSFT 19Jul19 135 puts (MSFT190719P135) for a debit of $2.67 (buying a calendar)

BTO 3 MSFT 30Aug19 136 puts (MSFT190830P136)
STO 3 MSFT 19Jul19 136 puts (MSFT190719P136) for a debit of $2.04 (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