Cabot Options Institute Fundamentals - Alert (DBC, TTE)
Before I get to our trade in TTE, I just wanted to remind everyone that, per our strategy guidelines, we will be exiting our Dogs and Small Dogs positions over the next two weeks, prior to the December 29, 2023 expiration cycle. I’ll be reentering the new Dogs and Small positions at the onset of 2024. Moreover, I plan to discuss a new variation on how to approach the Dogs.
Other than TTE, DBC is our only position with December calls. I plan on allowing our December 15, 2023, 26 calls to expire worthless and will sell more calls at the beginning of next week.
O’Shaughnessy’s Growth-Value Portfolio
TotalEnergies SE (TTE)
I’m going to lock in our TTE profits today. It’s been a good run. When we initiated the trade back on June 30 of this year, the underlying stock was trading for 57.69; now it’s trading for 67.22., for a 16.5% gain. We couldn’t have asked for a better setup.
By using our poor man’s covered call approach, an inherently bullish strategy, we were able to capitalize on the advance. Our return stands at 60.8%. So today I’m going to close out our position, lock in profits and move on to the next opportunity.
Here is the trade:
Sell to close TTE January 17, 2023, 50 call for roughly $18.30. (Adjust accordingly, prices may vary from time of alert.)
Once that occurs (or if you are new to the position and already own LEAPS):
Buy to Close TTE December 15, 2023, 70 call for roughly $0.05. (Adjust accordingly, prices may vary from time of alert.)
If you have any questions, please don’t hesitate to email me at andy@cabotwealth.com.