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#004 Trades opened today

We have added a few more trades today to our accounts:

Bought 1 SPY Jan20 2023 (LEAPS) 335 call for -44.30 debit
Sold 1 SPY Oct 9 (weekly) 348 call for +0.42 credit

We completed our goal in our account and saved enough buying power to buy LEAPS against the SPY index (3 years expiration). The premise of this trade is that in three years, I expect this market to be higher, a lot higher, even with corrections and bumps on the road (possibly we get at $400 or higher in the next three years). If that happens, our LEAPS call will be worth $90.9 per share, which means we would more than double our money. Our investment would go from $4,430 to $9,090.

But, we will not sit tight on this trade, we will also start selling covered calls against this trade. We sold our first weekly covered call and collected $42 credit. At current prices, we can collect around $40 per week or $120 per month. If we happen to collect that amount, during the lifespan of our LEAPS, we should collect an additional $7,900 in premiums in the next three years. Our total profit would then be $12,560 in three years or 283%.


Roll 1 IWM Oct 30 (weekly) 153 call to Nov 6 (weekly) 154 call for +0.63 credit

Markets continue higher in a strong rally which made our IWM covered call in the money. We decided to roll the trade higher and away in time. However, we rolled an in the money call to in the money call. We will be slowly rolling higher and tracing the market until the call gets out of the money.

IWM roll

Bought 4 T shares @ 28.66

Roll 1 PPL Nov 20 (monthly) 28 call to Jan 15 (monthly) 28 call for +0.42 credit

Our poor man’s covered call is not working as wanted, so we rolled our short call to January expiration, making our PMCC trade a regular vertical call spread. In January, we plan on converting this trade to short put trade.


PPL roll

Roll 1 BAC Oct 9 (weekly) 24.5 call to Oct 16 (monthly) 25 call for +0.11 credit

Our covered call with 24.50 strike got in the money and we only had 4 days to expiration. We do not want to give up our shares so we decided to roll the trade higher and one week away. We collected a small credit.


BAC roll


You can see all our trades on Trades & Income page.

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