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TRADE BULLETIN: June Options Expiry – Roll Out the Troublemakers! (WING/KO, VXX, FCX, SHOP)

Posted on June 19, 2020

A quick one to take care of several initiatives that require a rollout.

We start with –

Our WING/KO initiative of April 29th

The short WING 120 CALL is ever so slightly in the money and trades for $2.10.  Buy it back and sell the WING July 17th 130 CALL for $1.65.  Together with the $0.80 on the KO CALLs that we pulled in here, our new credit is $0.35.

Next is our VXX initiative of March 9th

Here, too, our short VXX 36 CALL is a hair ITM, trading for $1.51, while the long 41 CALL is fetching $0.24.

Close out the spread by buying back the first and selling the second, and you incur a debit of $1.27 to add to your existing -$0.03.

Then sell the VXX July 2nd 47 CALL for $1.47 to cover it.

New credit on the trade is $0.17

On January 14th we opened an FCX trade that now needs action

The short 13 PUT is now ITM, so we’re rolling it out.

Buy it back for $2.47 and sell the July 2nd 11 PUT for 0.76.  On expiry, that will put us in a credit position of $0.08.

[We were already in a credit position of $1.79 on the trade.  See here for details.]

SHOP trade opened November 12th, 2019

Our expiring SHOP 390 CALL should be repurchased for $476 and three (3) SHOP November 20th 820 CALLs should be sold for $159 each.  That should leave us with a dollar credit on expiration directly after the November elections.

If they happen…

Eschatologically yours,

Alan B. Harvard

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