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Fundamentals
Realistic Strategies, Realistic Returns

December 26, 2023

We started the process of closing out a few of our Dogs and Small Dogs of the Dow positions last week and will close the remaining over the next day or so. Once that is complete, we simply wait until the first week of 2024 to initiate our new Dogs and Small Dogs positions (and several others across various portfolios).

Dogs of the Dow Portfolio Alert (VZ, DOW, MMM, CSCO, IBM, WBA, CVX)

We started the process of closing out a few of our Dogs and Small Dogs of the Dow positions last week and will close the remaining over the next day or so. Once that is complete, we simply wait until the first week of 2024 to initiate our new Dogs and Small Dogs positions (and several others across various portfolios).

But before I enter our new 2024 Dogs of the Dow trades, I intend on having a subscriber-only event that will go into great detail on the strategy used within the Fundamentals service and how we approach each individual portfolio.

Click here to sign up for the event. And if you can’t make it, no worries, we archive absolutely everything here at Cabot so you can watch at your leisure.

Verizon (VZ)

Verizon is currently trading for 37.44.

The stock was down 5.88% on the year, while our position managed to close out the year with a positive 1.54% return.

Here is the trade:

Buy to close VZ December 29, 2023, 37 call for roughly $0.57. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_VZ_calls.png

Once that occurs:

Sell to close VZ January 17, 2025, 30 call for roughly $7.75. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_VZ_LEAPS.png

Dow Inc. (DOW)

Dow is currently trading for 55.58.

The stock was up 6.58% on the year. Our position was up 26.65%.

Here is the trade:

Buy to close DOW December 29, 2023, 53 call for roughly $2.67. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_DOW_calls.png

Once that occurs:

Sell to close DOW January 17, 2025, 37.5 call for roughly $18.75. (Adjust accordingly, prices may vary from time of alert.)

COI_QT_122623_DOW_LEAPS.png

3M (MMM)

MMM is currently trading for 107.78.

Here is the trade:

Buy to close MMM December 29, 2023, 106 call for roughly $2.32. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_MMM_calls.png

Once that occurs:

Sell to close MMM January 17, 2025, 90 call for roughly $23.30. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_MMM_LEAPS.png

Okay, our Dogs of the Dow positions are officially closed for 2023. I’ll give the overall stats in our upcoming monthly issue that is due out in a few weeks. I can safely say that the Small Dogs outperformed the Dogs by a wide margin this year. And by the looks of it, our Small Dogs portfolio is close to pushing above 25% for the year. Not bad.

Cisco Systems (CSCO)

CSCO is currently trading for 50.24.

Here is the trade:

Buy to close CSCO December 29, 2023, 50 call for roughly $0.47. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_CSCO_calls.png

Once that occurs:

Sell to close CSCO January 17, 2025, 35 call for roughly $16.00. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_CSCO_LEAPS.png

International Business Machines (IBM)

IBM is currently trading for 162.84.

Here is the trade:

Buy to close IBM December 29, 2023, 165 call for roughly $0.35. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_IBM_calls.png

Once that occurs:

Sell to close IBM January 17, 2025, 105 call for roughly $58.85. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_IBM_LEAPS.png

Walgreens Boots Alliance (WBA)

WBA is currently trading for 26.60.

Here is the trade:

Buy to close WBA December 29, 2023, 21.5 call for roughly $5.20. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_WBA_calls.png

Once that occurs:

Sell to close WBA January 17, 2025, 25 call for roughly $5.05. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_WBA_LEAPS.png

Chevron (CVX)

CVX is currently trading for 152.89.

Here is the trade:

Buy to close CVX December 29, 2023, 150 call for roughly $3.35. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_CVX_calls.png

Once that occurs:

Sell to close CVX January 17, 2025, 125 call for roughly $33.70. (Adjust accordingly, prices may vary from time of alert.)

COI_F_122623_CVX_LEAPS.png

If you have any questions, please feel free to email me at andy@cabotwealth.com. I’m more than happy to help in any way I can.


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.