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Andy Crowder

Chief Analyst, Cabot Options Institute

Andy Crowder is a professional options trader, researcher and Chief Analyst of Cabot Options Institute. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.

From this author
With 18 days left until expiration and our IWM iron condor worth $0.24, I want to go ahead and lock in some nice profits. We sold the iron condor for $0.75 just 13 days ago and are now able to lock in over 10% on the trade. If you choose to hold on to the trade, please be aware of the risks.
Not much has changed in the past week. We currently have two open positions: a bear call spread in SPY and an IWM iron condor. Both are due to expire December 16, 2022, and both are currently in a profitable state. My hope is that we can take both of our trades off this week for nice profits.

I also plan on adding another bear call spread to the mix this week, this time for the January expiration cycle. And if we see a decent pullback this week, I’ll follow that trade with a bull put spread in January.
We locked in a return of 3.9% in GDX and 3.8% in KO last week and, if all goes as planned, look to lock in even more in PFE this week. Moreover, I plan on continuing to wheel both GDX and KO, so expect to see trade alerts for both stocks as I intend on selling a few puts.

Lastly, if the market cooperates and pulls back a bit from its current short-term overbought state, I intend on adding a few short-term trades to the mix, mostly by selling puts, but we could see an appearance of a jade lizard. Stay tuned!
We are officially entering the earnings doldrums, but that certainly doesn’t mean that opportunities won’t present themselves. For instance, this week Marvell (MRVL) announces earnings and offers a decent opportunity for an iron condor and potentially a candidate for a short strangle.

I’ve gone over an iron condor example in the “Weekly Trade Ideas” section below and will send out a short strangle idea as we get closer to the earnings announcement Friday. As always, I’ll let everyone know (in a separate alert) whether or not I will be making the trade.
An updated portfolio for Cabot Options Institute – Income Trader.
An updated portfolio for Cabot Options Institute – Earnings Trader.
An updated portfolio for Cabot Options Institute – Quant Trader.
An updated portfolio for Cabot Options Institute – Fundamentals Portfolio.
We want to bring the delta of our position back to “normal” state. In our terms “normal” means a delta between roughly 0.40 and 0.60. As it stands, with TLT rallying as of late, our deltas are near parity.
The right options income strategies can help you generate yield in any market. Here’s how to use “The Wheel” on your favorite stocks.
An updated portfolio for Cabot Options Institute – Fundamentals Portfolio.
We currently have two open positions: a bear call spread in SPY and an IWM iron condor. Both are due to expire December 16, 2022 and both are currently in a profitable state. So there really isn’t too much to say at the moment. I do plan on adding a bull put spread to the portfolio, mostly to even out the deltas a bit, but as always, I’m not going to force it.
This week we have two positions due to expire: one in GDX, the other in KO.

Both positions are in the covered call phase of the income wheel strategy and both have calls that look to close in-the-money at the end of this week. If both close in-the-money, we will simply lock in our capital gains, premium and begin the wheel process over again by selling more puts in both positions early next week.

I also intend on adding a new short-term trade to the mix this week. Stay tuned!
An updated portfolio for Cabot Options Institute – Quant Trader.
Another earnings season is finally behind us.

After two winning trades in Home Depot (HD) and Walmart (WMT) last week our cumulative total for the earnings cycle was 21.7%. That’s an average gain of 3.1% per trade, below our expected return per trade but certainly nothing to sneeze at, especially in this volatile market. I’ll take what can be thought of as paying myself a 3.1% dividend, seven times, over the past month or so. Again, not even close to a home run, but remember, we aren’t playing long ball. Aaron Judge doesn’t interest us. Our goal is to hit singles and doubles with each and very trade we place. We’re taking the Tony Gwynn/Rod Carew approach to trading earnings.
An updated portfolio for Cabot Options Institute – Earnings Trader.
Cabot Options Institute Income Trader is focused exclusively on the creating consistent income through a variety of options selling strategies. Whether you have questions about selling puts, covered strangles, jade lizards or our income wheel approach, Andy is more than happy to help you steepen your learning curve in this live event.
Cabot Options Institute Fundamentals is focused exclusively on the Poor Man’s Covered Call strategy, which is a way to collect reliable gains from a relatively simple options strategy, without the substantial up-front cost of a regular covered call strategy.
We currently own the IEF January 19, 2024, 85 call LEAPS contract at $19.00. You must own LEAPS in order to use this strategy.

Our BITO 13.5 calls for the November 25, 2022, expiration cycle are essentially worthless. As a result, I want to buy back our BITO calls, lock in our premium and immediately sell more premium.
Cabot Options Institute Quant Trader is focused exclusively on creating consistent returns using high-probability options strategies including bear call spreads, bull put spreads, iron condors and more. Whether you have questions about the strategies, or even about setting up your account, or how to make your own trades, Andy will answer all of your questions
With the Russell 2000 ETF (IWM) trading for 184.87, I want to place a short-term iron condor going out 30 days. My intent is to take off the trade well before the December 16, 2022, expiration date.
We currently own the EEM January 19, 2024, 30 call LEAPS contract at $11.50. You must own LEAPS in order to use this strategy.
I will be exiting the Home Depot (HD) trade today. I will discuss the trade in greater detail in our upcoming subscriber-exclusive webinar, at noon ET this Friday.
As discussed in our weekly issue last week, and on our weekly call, I will be taking a position in Walmart (WMT) today.
An updated portfolio for Cabot Options Institute – Fundamentals Portfolio.
There really isn’t too much to report at the moment. Our passive portfolios continue to impress in the midst of a challenging market which displays the overall power of the passive approach. And I continue to mostly sit on the sidelines in our active portfolios, although that approach will be changing soon. I intend on adding several new positions to the active portfolios this expiration cycle as we are starting to see some good entry prices for several of the companies on our watchlist.
As I discussed in our subscribers-only webinar on Friday, this week should be the busiest trading week of the earnings cycle.

Several of the big box retailers are due to report including Home Depot (HD), Walmart (WMT), Lowe’s (LOW), Target (TGT), Cisco Systems (CSCO) and a few other notable names. All offer good volume and all are currently offering some decent premium for trades with at least an 85% probability of success, if not slightly higher.

I expect that we will see at least three trades, if not more, this week before we enter the doldrums of another earnings off-season that begins in earnest next week.
An updated portfolio for Cabot Options Institute – Earnings Trader.
We decided to stay on the sidelines last week given the market action, but intend to add several new positions for each of our portfolios this week. As I’ve stated in the past, I don’t plan on ramping up positions quickly; rather, I take a methodical approach to slowly adding a few new positions to the mix. As for our current positions, they remain in good shape. Other than BITO we’ve had a good stretch over the past few months and if all goes well BITO might even join the club, if we continue to allow it.