March 27, 2020 Terry’s Tips Trade Alert – Wiley Wolf Portfolio

We will start rolling out our short options by buying back far out-of-the-money puts that will incur no commissions. Note that we are rolling out three weeks (to April 17) rather than the usual four weeks (April 24) because the liquidity in the monthly April 17 series is far superior and will give us better fills. In fact, the April 17 bid/ask spreads are mostly less than $0.25, while the April 24 spreads are mostly in the $3-4 range:

BTC 1 MSFT 27Mar20 130 put (MSFT200327P130) for $0.03 (no commissions)

BTC 3 MSFT 27Mar20 135 puts (MSFT200327P135) for $0.04 (no commissions)

BTC 2 MSFT 27Mar20 138 puts (MSFT200327P138) for $0.04 (no commissions)

STO 1 MSFT 17Apr20 150 put (MSFT200417P150) for $8.60

STO 1 MSFT 17Apr20 145 put (MSFT200417P145) for $6.50

STO 1 MSFT 17Apr20 140 put (MSFT200417P140) for $5.10

BTO 1 MSFT 18Sep20 150 put (MSFT200918P150)
STC 1 MSFT 18Sep20 130 put (MSFT200918P130) for a debit of $8.00 (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