Weekly Commentary
There isn’t much to discuss at the moment so I’m going to keep it short this week. We have several positions to due to expire each of the next three weeks. If all goes as planned, we should have the ability to lock in some really nice premium which should push our returns to new highs.
We currently have seven positions that are using the “income wheel” approach and my intent is to add at least one more to the mix this week, with the overall goal of always having 8 to 10 income-producing positions.
Current Positions
| Open Date | Ticker | Stock Price (open) | Stock Price (current) | Strategy | Trade | Open Price | Current Price | Position Delta |
| Income Wheel Portfolio - Open Trades | ||||||||
| 10/23/2023 | DKNG | $28.43 | $35.03 | Covered Call | November 17, 2023 32 Call | $0.87 | $3.20 | 0.13 |
| 10/13/2023 | PFE | $32.40 | $29.48 | Covered Call | November 24, 2023 34 Call | $0.62 | $0.03 | 0.96 |
| 10/23/2023 | GDX | $29.42 | $27.30 | Covered Call | December 1, 2023 31.5 Call | $0.58 | $0.03 | 0.96 |
| 10/13/2023 | KO | $53.23 | $56.72 | Covered Call | November 24, 2023 55 Call | $0.75 | $1.98 | 0.2 |
| 10/23/2023 | WFC | $40.02 | $40.89 | Covered Call | December 1, 2023 41 Call | $0.87 | $0.88 | 0.51 |
| 10/2/2023 | BITO | $14.24 | $18.85 | Covered Call | November 17, 2023 15 Call | $0.47 | $3.85 | 0.95 |
| 10/25/2023 | XLU | $59.00 | $60.32 | Selling Puts | December 15, 2023 56 Put | $0.56 | $0.20 | 0.11 |
| Open Date | Close Date | Ticker | Strategy | Trade | Open Price | Closed Price | Profit | Return |
| Income Wheel Portfolio - Closed Trades | ||||||||
| 6/2/2022 | 7/8/2022 | PFE | Short Put | July 8, 2022 50 Put | $0.65 | $0.00 | $0.65 | 1.30% |
| 6/10/2022 | 7/15/2022 | GDX | Short Put | July 15, 2022 29 Put | $0.66 | Assigned at $29 | ($2.75) | -9.48% |
| 6/10/2022 | 7/15/2022 | BITO | Short Put | July 15, 2022 16 Put | $0.82 | Assigned at $16 | ($2.09) | -13.10% |
| 6/22/2022 | 7/21/2022 | WFC | Short Put | July 29, 2022 35 Put | $0.80 | $0.02 | $0.78 | 2.23% |
| 6/30/2022 | 8/10/2022 | KO | Short Put | August 19, 2022 57.5 Put | $0.70 | $0.03 | $0.67 | 1.20% |
| 7/21/2022 | 8/10/2022 | WFC | Short Put | August 19, 2022 39 Put | $0.46 | $0.04 | $0.42 | 1.08% |
| 7/18/2022 | 8/17/2022 | BITO | Covered Call | August 19, 2022 16 Call | $0.50 | $0.03 | $0.47 | 3.59% |
| 7/18/2022 | 8/17/2022 | GDX | Covered Call | August 19, 2022 28 Call | $0.63 | $0.05 | $0.57 | 2.22% |
| 7/11/2022 | 8/23/2022 | PFE | Short Put | August 19, 2022 50 Put | $1.00 | Assigned at $50 | $0.21 | 0.43% |
| 7/26/2022 | 8/17/2022 | JPM | Short Put | September 16, 2022 100 Put | $1.22 | $0.16 | $1.06 | 1.10% |
| 8/17/2022 | 9/7/2022 | BITO | Covered Call | September 23, 2022 16.5 Call | $0.55 | $0.03 | $0.52 | 4.00% |
| 8/17/2022 | 9/7/2022 | GDX | Covered Call | September 23, 2022 28 Call | $0.59 | $0.07 | $0.52 | 2.03% |
| 8/23/2022 | 9/23/2022 | PFE | Covered Call | October 21, 2022 50 Call | $1.50 | $0.09 | $1.41 | 2.82% |
| 8/10/2022 | 9/23/2022 | KO | Short Put | September 23, 2022 60 Put | $0.62 | Assigned at $60 | ($0.78) | -1.30% |
| 8/10/2022 | 9/23/2022 | WFC | Short Put | September 23, 2022 41 Put | $0.61 | Assigned at $41 | $0.02 | 0.05% |
| 9/7/2022 | 10/17/2022 | BITO | Covered Call | October 21, 2022 14 Call | $0.40 | $0.03 | $0.37 | 2.60% |
| 9/7/2022 | 10/17/2022 | GDX | Covered Call | October 21, 2022 26 Call | $0.70 | $0.04 | $0.66 | 2.50% |
| 9/26/2022 | 10/21/2022 | WFC | Covered Call | October 21, 2022 41 Call | $1.30 | Called away at $41 | $1.89 | 4.67% |
| 9/26/2022 | 10/21/2022 | KO | Covered Call | October 21, 2022 60 Call | $0.70 | $0.00 | $0.70 | 1.20% |
| 9/23/2022 | 1028/2022 | PFE | Covered Call | October 28, 2022 47 Call | $0.56 | Called away at $47 | $3.49 | 7.43% |
| 10/17/2022 | 11/17/2022 | BITO | Covered Call | November 25, 2022 13.5 Call | $0.38 | $0.03 | $0.35 | 2.60% |
| 10/25/2022 | 11/17/2022 | WFC | Short Put | November 25, 2022 43 Put | $0.96 | $0.07 | $0.89 | 2.00% |
| 10/17/2022 | 11/25/2022 | GDX | Covered Call | November 25, 2022 26 Call | $0.58 | Called away at $26 | $1.09 | 3.87% |
| 10/25/2022 | 11/25/2022 | KO | Covered Call | November 25, 2022 60 Call | $0.80 | Called away at $60 | $2.20 | 3.75% |
| 11/3/2022 | 12/8/2022 | PFE | Short Put | December 16, 2022 45 Put | $1.08 | $0.02 | $1.06 | 2.36% |
| 11/17/2022 | 12/19/2022 | BITO | Covered Call | December 30, 2022 12 Call | $0.45 | $0.04 | $0.41 | 3.42% |
| 11/17/2022 | 12/30/2022 | WFC | Short Put | December 30, 2022 44 Put | $1.02 | Assigned at $44 | ($1.37) | -3.11% |
| 11/29/2023 | 1/9/2023 | GDX | Short Put | January 20, 2023 26 Put | $0.87 | $0.02 | $0.85 | 3.27% |
| 12/8/2022 | 1/13/2023 | PFE | Short Put | January 13, 2023 49 Put | $0.62 | Assigned at $49 | ($0.53) | -1.08% |
| 12/19/2022 | 1/20/2023 | BITO | Covered Call | January 20, 2023 11.5 Call | $0.30 | Called away at $11.5 | $1.49 | 14.70% |
| 11/29/2022 | 1/20/2023 | KO | Short Put | January 20, 2023 60 Put | $0.84 | $0.00 | $0.84 | 1.40% |
| 1/5/2023 | 2/17/2023 | WFC | Covered Call | February 17, 2023 45 Call | $0.84 | Called away at $45 | $4.23 | 10.17% |
| 1/9/2023 | 2/17/2023 | GDX | Short Put | February 17, 2023 29 Put | $0.54 | Assigned at $29 | ($0.05) | -0.10% |
| 1/23/2023 | 2/17/2023 | KO | Short Put | February 17, 2023 59 Put | $0.62 | $0.00 | $0.62 | 1.05% |
| 1/23/2023 | 2/17/2023 | BITO | Short Put | February 17, 2023 13.5 Put | $0.52 | $0.00 | $0.52 | 3.85% |
| 1/20/2023 | 3/1/2023 | PFE | Covered Call | March 3, 2023 46 Call | $1.00 | $0.02 | $0.98 | 2.18% |
| 2/22/2023 | 3/23/2023 | BITO | Short Put | March 31, 2023 31 Put | $0.50 | $0.05 | $0.45 | 3.46% |
| 2/22/2023 | 3/29/2023 | KO | Short Put | March 31, 2023 59 Put | $0.86 | $0.02 | $0.84 | 1.42% |
| 3/1/2023 | 3/29/2023 | PFE | Covered Call | April 6, 2023 42 Call | $0.65 | $0.05 | $0.60 | 1.43% |
| 2/21/2023 | 3/31/2023 | GDX | Covered Call | March 31, 2023 29.5 Call | $0.75 | Called away at $29.5 | $1.84 | 6.48% |
| 2/23/2023 | 3/31/2023 | WFC | Short Put | March 31, 2023 43 Put | $0.53 | Assigned at $43 | ($4.87) | -11.32% |
| 3/29/2023 | 4/28/2023 | KO | Short Put | May 19, 2023 60 Puts | $0.76 | $0.08 | $0.68 | 1.13% |
| 3/29/2023 | 4/28/2023 | PFE | Covered Call | May 19, 2023 42.5 Call | $0.53 | $0.05 | $0.48 | 1.23% |
| 4/4/2023 | 5/8/2023 | GDX | Short Put | May 19, 2023 32 Put | $0.78 | $0.70 | $0.71 | 2.22% |
| 3/23/2023 | 5/18/2023 | BITO | Short Put | May 19, 2023 15 Put | $1.10 | $0.03 | $1.07 | 7.13% |
| 4/4/2023 | 5/24/2023 | WFC | Covered Call | May 19, 2023 40 Call | $0.55 | Called away at $40 | $3.94 | 10.76% |
| 4/28/2023 | 6/16/2023 | PFE | Covered Call | June 16, 2023 40 Call | $0.63 | Called away at $40 | $1.71 | 4.40% |
| 3/29/2023 | 6/16/2023 | KO | Short Put | June 16, 2023 62.5 Put | $0.70 | Assigned at $62.5 | ($0.13) | -0.21% |
| 5/8/2023 | 6/16/2023 | GDX | Short Put | June 16, 2023 34 Put | $0.91 | Assigned at $34 | ($1.70) | -5.00% |
| 5/18/2023 | 6/30/2023 | BITO | Short Put | June 30, 2023 14 Put | $0.45 | $0.01 | $0.44 | 3.14% |
| 5/24/2023 | 7/6/2023 | WFC | Short put | July 21, 2023 37.5 Put | $1.01 | $0.09 | $0.92 | 2.54% |
| 6/30/2023 | 7/24/2023 | DKNG | Short Put | August 18, 2023 22.5 Put | $0.63 | $0.09 | $0.54 | 2.40% |
| 7/6/2023 | 7/24/2023 | WFC | Short Put | August 25, 2023 40 Put | $0.76 | $0.12 | $0.64 | 1.60% |
| 6/21/2023 | 8/18/2023 | PFE | Short Put | August 18, 2023 37.5 Put | $0.64 | Assigned at $37.5 | ($0.24) | -0.64% |
| 6/21/2023 | 8/18/2023 | GDX | Covered Call | August 18, 2023 33 Call | $0.52 | $0.00 | $0.52 | 1.60% |
| 6/21/2023 | 8/18/2023 | KO | Covered Call | August 18, 2023 62.5 Call | $0.85 | $0.00 | $0.85 | 1.40% |
| 6/30/2023 | 8/18/2023 | BITO | Short Put | August 18, 2023 15 Put | $0.78 | Assigned at $15 | ($0.78) | -5.20% |
| 7/24/2023 | 9/14/2023 | DKNG | Short Put | September 15, 2023 28 Put | $1.36 | $0.02 | $1.34 | 4.79% |
| 8/21/2023 | 9/14/2023 | PFE | Covered Call | September 29, 2023 38 Call | $0.78 | $0.02 | $0.76 | 2.00% |
| 8/21/2023 | 9/14/2023 | KO | Covered Call | September 29, 2023 61 Call | $0.78 | $0.03 | $0.75 | 1.23% |
| 7/24/2023 | 9/15/2023 | WFC | Short Put | September 15, 2023 45 Put | $0.85 | Assigned at $45 | ($1.20) | -2.67% |
| 8/21/2023 | 9/29/2023 | BITO | CoveredCall | September 29, 2023 14 Call | $0.48 | $0.00 | $0.48 | 3.58% |
| 9/14/2023 | 10/13/2023 | PFE | CoveredCall | October 20, 2023 35 Call | $0.58 | $0.04 | $0.54 | 1.47% |
| 9/14/2023 | 10/13/2023 | KO | CoveredCall | October 27, 2023 59 Call | $0.95 | $0.03 | $0.92 | 1.49% |
| 9/14/2023 | 10/20/2023 | DKNG | Short Put | October 20, 2023 30 Put | $0.98 | Assigned at $30 | ($1.95) | -6.50% |
| 8/21/2023 | 10/20/2023 | GDX | Covered Call | October 20, 2023 29 Call | $0.86 | $0.00 | $0.86 | 3.11% |
| 9/18/2023 | 10/20/2023 | WFC | Covered Call | October 20, 2023 44.5 Call | $0.89 | $0.00 | $0.89 | 2.05% |
| 107.42% | ||||||||
ETF Watchlist – Weekly Trade Ideas
| Exchange Traded Fund | Ticker Symbol | IV | IV Rank | HPMR Oversold - Overbought |
| ARK Innovation ETF | ARKK | 38.1 | 20.1 | 60.1 |
| Proshares Bitcoin ETF | BITO | 65.7 | 32.1 | 82.3 |
| SPDR Dow Jones | DIA | 11.8 | 11.9 | 70 |
| iShares MSCI Emerging Markets | EEM | 16.1 | 15.3 | 60.9 |
| iShares MSCI EAFE | EFA | 14.7 | 17.5 | 64.3 |
| iShares MSCI Mexico ETF | EWW | 23.0 | 28.8 | 65.8 |
| iShares MSCI Brazil | EWZ | 28.0 | 4.6 | 72.1 |
| iShares China Large-Cap | FXI | 27.7 | 6.2 | 41.5 |
| Vaneck Gold Miners | GDX | 30.9 | 24.8 | 30.9 |
| SPDR Gold | GLD | 13.7 | 27.2 | 32.2 |
| iShares High-Yield | HYG | 8.3 | 22.4 | 64.8 |
| iShares Russell 2000 | IWM | 20.2 | 23.4 | 50.5 |
| SPDR Regional Bank | KRE | 31.3 | 12 | 50.7 |
| Vaneck Oil Services | OIH | 31.1 | 18.3 | 37.5 |
| Invesco Nasdaq 100 | QQQ | 18.3 | 7.3 | 75.7 |
| iShares Silver Trust | SLV | 27.0 | 27.1 | 30.9 |
| Vaneck Semiconductor | SMH | 27.2 | 19 | 84.4 |
| SPDR S&P 500 | SPY | 14.4 | 14.9 | 72 |
| iShares 20+ Treasury Bond | TLT | 19.6 | 45.9 | 58.4 |
| United States Oil Fund | USO | 39.0 | 51.5 | 36 |
| Proshares Ultra VIX Short | UVXY | 98.2 | 15.5 | 29 |
| CBOE Market Volatility Index | VIX | 85.3 | 31.5 | 29.1 |
| Barclays S&P 500 VIX ETN | VXX | 66.1 | 14.9 | 29.2 |
| SPDR Biotech | XLB | 16.3 | 21 | 54.7 |
| SPDR Energy Select | XLE | 22.3 | 13.9 | 35.5 |
| SPDR Financials | XLF | 15.8 | 6.6 | 70.8 |
| SPDR Utilities | XLU | 17.8 | 30.8 | 49.7 |
| SPDR S&P Oil & Gas Explorer | XOP | 28.5 | 15.7 | 29.8 |
| SPDR Retail | XRT | 23.7 | 43.6 | 48.6 |
Stock Watchlist – Weekly Trade Ideas
| Stock - Income Trader | Ticker Symbol | IV | IV Rank | HPMR Oversold - Overbought |
| Apple | AAPL | 20.7 | 3.8 | 81.3 |
| Bank of America | BAC | 28.7 | 20.1 | 57.9 |
| Bristol-Myers Squibb | BMY | 22.7 | 41.1 | 28.6 |
| Citigroup | C | 25.8 | 8.6 | 67.2 |
| Caterpillar | CAT | 23.8 | 13.3 | 49.1 |
| Comcast | CMCSA | 21.0 | 9.9 | 49.5 |
| Costco | COST | 18.4 | 17.3 | 69.8 |
| Cisco Systems | CSCO | 26.2 | 49.9 | 48.5 |
| Chevron | CVX | 22.4 | 21.0 | 29.6 |
| Disney | DIS | 24.3 | 2.5 | 67.2 |
| Duke Energy | DUK | 20.9 | 33.6 | 44 |
| Fedex | FDX | 23.9 | 9.1 | 56.8 |
| Gilead Sciences | GILD | 23.7 | 21.1 | 34.4 |
| General Motors | GM | 37.7 | 48.3 | 32.4 |
| Intel | INTC | 30.7 | 3.7 | 69 |
| Johnson & Johnson | JNJ | 19.3 | 51.6 | 30.7 |
| JP Morgan | JPM | 19.0 | 5.4 | 71.8 |
| Coca-Cola | KO | 17.0 | 36.0 | 58 |
| Altria Group | MO | 18.9 | 33.4 | 34.7 |
| Merck | MRK | 20.1 | 21.5 | 32.9 |
| Morgan Stanley | MS | 23.3 | 11.4 | 56.6 |
| Microsoft | MSFT | 21.9 | 9.3 | 82.6 |
| Nextera Energy | NEE | 31.2 | 54.2 | 37.1 |
| Nvidia | NVDA | 52.9 | 49.5 | 81.6 |
| Pfizer | PFE | 29.0 | 62.7 | 26.1 |
| Paypal | PYPL | 32.0 | 11.7 | 54.8 |
| Starbucks | SBUX | 17.9 | -5.3 | 72.7 |
| AT&T | T | 21 | 5 | 56.7 |
| Verizon | VZ | 18.4 | 6.6 | 65.3 |
| Walgreens Boots Alliance | WBA | 38.9 | 55.6 | 40 |
| Wells Fargo | WFC | 26.2 | 7.2 | 55.9 |
| Walmart | WMT | 21.3 | 39.7 | 66.6 |
| Exxon Mobil | XOM | 24.3 | 19.3 | 35 |
Weekly Trade Discussion: Open Positions
Covered Calls: PFE December 15, 2023, 31 Calls
Original trade published on 11-9-2023 (click here to see original alert)
Current Comments: We sold the December 15, 2023, 31 calls for $0.62. At the time of the alert, PFE was trading for 29.84.
Now, with PFE trading for 29.45, the probability of success stands at 73.80%, and the price of the 31 calls sits at $0.47. There are 34 days left in the December 15, 2023, expiration cycle so there isn’t much to do other than to allow time decay to work its magic.
Covered Calls: KO November 24, 2023, 55 Calls
Original trade published on 10-13-2023 (click here to see original alert)
Current Comments: We sold the November 24, 2023, 55 calls for $0.75. At the time of the alert, KO was trading for 53.23.
Now, with KO trading for 56.72, the probability of success stands at 21.03%, and the price of the 55 calls sits at $2.00. KO has rallied off fresh 52-week lows and through our 55 calls with 12 days left until expiration. No worries – if KO closes above our 55 calls in 12 days our shares will be called away, and we will lock in all options premium sold plus any capital gains from our held shares.
Covered Calls: BITO November 17, 2023, 15 Calls
Original trade published on 10-2-2023 (click here to see original alert)
Current Comments: We sold the November 17, 2023, 15 calls for $0.47. At the time of the alert, BITO was trading for 14.24.
Now, with BITO trading significantly higher at 18.84, the probability the position closes in the money stands at over 99%, and the price of the 15 calls sits at $2.45. There are 5 days left in the November 17, 2023, expiration cycle. Similar to KO, if BITO closes above its short call strike of 15 in 5 days, no worries, our shares will be called away, we will lock in all options premium sold plus any capital gains from our held shares.
Covered Calls: DKNG November 17, 2023, 32 Calls
Original trade published on 10-23-2023 (click here to see original alert)
Current Comments: We sold the November 17, 2023, 32 calls for $0.87. At the time of the alert, DKNG was trading for 28.43.
Now, with DKNG trading for 35.03, the probability of success stands at 14.94%, and the price of the 32 calls sits at $3.25. There are 5 days left in the November 17, 2023 expiration cycle and not much to say other than, so far, so good. Similar to KO and BITO, if DKNG closes above its short call strike of 32 in 5 days, no worries, our shares will be called away, and we will lock in all options premium sold plus any capital gains from our held shares.
Covered Calls: GDX December 1, 2023, 31.5 Calls
Original trade published on 10-23-2023 (click here to see original alert)
Current Comments: We sold the December 1, 2023, 31.5 calls for $0.58. At the time of the alert, GDX was trading for 29.42.
Now, with GDX trading for 27.26, the probability of success stands at 96.87%, and the price of the 31.5 calls sits at $0.04. There are 19 days left in the December 1, 2023 expiration cycle and with little to no value left in our 31.5 calls, I plan on buying back our calls early in the week and immediately selling more call premium.
Covered Calls: WFC December 1, 2023, 41 Calls
Original trade published on 10-23-2023 (click here to see original alert)
Current Comments: We sold the December 1, 2023, 41 calls for $0.87. At the time of the alert, WFC was trading for 40.02.
Now, with WFC trading for 40.89, the probability of success stands at 52.84%, and the price of the 41 calls sits at $0.88. There are 19 days left in the December 1, 2023 expiration cycle and not much to do at the moment, other than to allow our position to run its course into the December 1 expiration cycle.
Covered Calls: XLU December 15, 2023, 56 Puts
Original trade published on 10-25-2023 (click here to see original alert)
Current Comments: We sold the December 15, 2023, 56 puts for $0.75. At the time of the alert, XLU was trading for 59.
Now, with XLU trading for 60.31, the probability of success stands at 87.95%, and the price of the 56 puts sits at $0.21. There are 34 days left in the December 15, 2023, expiration cycle. XLU has recently rallied off fresh 52-week lows and if the recent trend continues, we should be able to take off the trade early for a nice profit and immediately sell more put premium.
As always, if you have any questions, please do not hesitate to email me at andy@cabotwealth.com.
The next Cabot Options Institute – Income Trader issue will be
published on November 20, 2023.
