By the way, we did have BA in the LTP – it was our Top Trade on the 12th:
| BA Short Put | 2024 19-JAN 200.00 PUT [BA @ $153.95 $-0.51] | -5 | 11/17/2021 | (631) | $-15,000 | $30.00 | $27.60 | $-30.00 | $57.60 | $0.23 | $-13,800 | -92.0% | $-28,800 | ||
| BA Long Call | 2024 19-JAN 170.00 CALL [BA @ $153.95 $-0.51] | 20 | 4/12/2022 | (631) | $84,200 | $42.10 | $-13.83 | $28.28 | $1.28 | $-27,650 | -32.8% | $56,550 | |||
| BA Short Call | 2024 19-JAN 225.00 CALL [BA @ $153.95 $-0.51] | -20 | 4/12/2022 | (631) | $-42,800 | $21.40 | $-8.23 | $13.18 | $0.74 | $16,450 | 38.4% | $-26,350 |
Even cheaper now!
When the VIX is around 30, we need to look at everything and think "How can I sell more premium?" Rolling down has that affect as we roll to a position (usually) that has less premium and we sell covering calls that have more.
In this case the BA 2024 $170s are $28.28 and the $150s are $37.15 so net $8.87 to roll down $20 is worth $17,740 to widen the spread by $40,000. Owning 500 shares at net $170 certainly doesn't scare us and I think we'll save a potential DD for if they go lower. In theory, we could buy 20 more of the $150s ($74,300) and sell 5 2024 $175 puts for $40 ($20,000) and we sell 20 $200 calls for $18.50 ($39,000) then we're only spending net $15,300 to buy another $100,000 spread so that spread (5 short puts and 20 of the $150/200s) is a no-brainer as a new trade. Now that I write it out – I decided to make it official as it's too good to pass by.
While we are at it then, let's sell 5 GNRC 2024 $180 puts in the Earnings Portfolio for $18 ($9,000) to remind us to keep an eye on them. No worries about the net $162 entry, which is $70 (30%) below the current price.
