Weekly Commentary
All is well as we head towards the October 20, 2023, expiration cycle. Our BITO position is due to expire at the end of the week, and if all goes well, I intend to buy back our BITO calls, lock in profits and immediately sell more call premium. Otherwise, there isn’t much to do other than allow time decay to work its magic as we head closer and closer to the end of the October 20, 2023, expiration cycle. If our positions act accordingly, we have the opportunity to bring in 5% to 10% worth of call premium over the next 26 days.
Current Positions
| Open Date | Ticker | Stock Price (open) | Stock Price (current) | Strategy | Trade | Open Price | Current Price | Delta |
| Income Wheel Portfolio - Open Trades | ||||||||
| 9/14/2023 | DKNG | $31.40 | $27.76 | Short Put | October 20, 2023 30 Put | $0.98 | $2.88 | 0.68 |
| 9/14/2023 | PFE | $34.16 | $32.69 | Covered Call | October 20, 2023 35 Call | $0.58 | $0.14 | 0.14 |
| 8/21/2023 | BITO | $13.41 | $13.62 | Covered Call | September 29, 2023 14 Call | $0.48 | $0.12 | 0.29 |
| 8/21/2023 | GDX | $27.61 | $28.87 | Covered Call | October 20, 2023 29 Call | $0.86 | $0.86 | 0.5 |
| 9/14/2023 | KO | $58.47 | $57.60 | Covered Call | October 27, 2023 59 Call | $0.95 | $0.61 | 0.33 |
| Open Date | Close Date | Ticker | Strategy | Trade | Open Price | Closed Price | Profit | Return |
| Income Wheel Portfolio - Closed Trades | ||||||||
| 6/3/2022 | 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% |
| 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% |
| 101.12% | ||||||||
| Income Trader Portfolio | ||||||||
| 7/26/2022 | 8/17/2022 | JPM | Short Put | September 16, 2022 100 Put | $1.22 | $0.16 | $1.06 | 1.10% |
| 1.10% | ||||||||
ETF Watchlist – Weekly Trade Ideas
| Exchange Traded Fund | Ticker Symbol | IV | IV Rank | HPMR Oversold - Overbought |
| ARK Innovation ETF | ARKK | 38.3 | 16.5 | 14.4 |
| ProShares Bitcoin ETF | BITO | 41.1 | 3.8 | 49.3 |
| SPDR Dow Jones | DIA | 14.5 | 21.1 | 23.7 |
| iShares MSCI Emerging Markets | EEM | 17.3 | 17.6 | 40 |
| iShares MSCI EAFE | EFA | 15.5 | 15 | 31.4 |
| iShares MSCI Mexico ETF | EWW | 22.3 | 23.9 | 41.7 |
| iShares MSCI Brazil | EWZ | 28.5 | 8 | 40 |
| iShares China Large-Cap | FXI | 28.2 | 7.3 | 52.5 |
| VanEck Gold Miners | GDX | 28.6 | 11.4 | 43.8 |
| SPDR Gold | GLD | 10.8 | 4.1 | 52 |
| iShares High-Yield | HYG | 8.0 | 5.9 | 30.9 |
| iShares Russell 2000 | IWM | 20.9 | 21.5 | 19.2 |
| SPDR Regional Bank | KRE | 32.7 | 14.5 | 22.8 |
| VanEck Oil Services | OIH | 31.0 | 13.5 | 39.8 |
| Invesco Nasdaq 100 | QQQ | 22.3 | 22.1 | 22.5 |
| iShares Silver Trust | SLV | 23.7 | 5.8 | 61.7 |
| VanEck Semiconductor | SMH | 29.4 | 19.4 | 26.1 |
| SPDR S&P 500 | SPY | 17.0 | 21.3 | 20.1 |
| iShares 20+ Treasury Bond | TLT | 16.5 | 17.4 | 32.9 |
| United States Oil Fund | USO | 30.6 | 15 | 67 |
| ProShares Ultra VIX Short | UVXY | 118.2 | 40.5 | 68.7 |
| CBOE Market Volatility Index | VIX | 94.8 | 53.4 | 73.7 |
| Barclays S&P 500 VIX ETN | VXX | 79.7 | 39 | 69.3 |
| SPDR Biotech | XLB | 17.2 | 18.1 | 19.3 |
| SPDR Energy Select | XLE | 23.3 | 12.4 | 35.5 |
| SPDR Financials | XLF | 19.2 | 19.7 | 22.7 |
| SPDR Utilities | XLU | 16.2 | 11.2 | 40.3 |
| SPDR S&P Oil & Gas Explorer | XOP | 29.0 | 12.1 | 25 |
| SPDR Retail | XRT | 24.1 | 19.1 | 22.1 |
Stock Watchlist – Weekly Trade Ideas
| Stock - Income Trader | Ticker Symbol | IV | IV Rank | HPMR Oversold - Overbought |
| Apple | AAPL | 25.3 | 20.9 | 39.7 |
| Bank of America | BAC | 30.9 | 26.1 | 23.4 |
| Bristol-Myers Squibb | BMY | 21.1 | 24.7 | 34.7 |
| Citigroup | C | 31.7 | 24.5 | 31.3 |
| Caterpillar | CAT | 28.4 | 28.2 | 35.2 |
| Comcast | CMCSA | 24.6 | 16.4 | 44.7 |
| Costco | COST | 23.5 | 37.4 | 52.9 |
| Cisco Systems | CSCO | 17.7 | 10.2 | 18.8 |
| Chevron | CVX | 20.4 | 9.2 | 54.3 |
| Disney | DIS | 27.6 | 13.5 | 35.4 |
| Duke Energy | DUK | 20.5 | 19.1 | 53.9 |
| FedEx | FDX | 23.7 | 9.3 | 64 |
| Gilead Sciences | GILD | 23.6 | 25.8 | 35 |
| General Motors | GM | 37.7 | 29.4 | 36.3 |
| Intel | INTC | 37.2 | 19.3 | 22.9 |
| Johnson & Johnson | JNJ | 18.9 | 40.6 | 35.9 |
| JPMorgan | JPM | 25.9 | 28.8 | 35.7 |
| Coca-Cola | KO | 15.4 | 19.4 | 30.2 |
| Altria Group | MO | 18.6 | 20.3 | 20.4 |
| Merck | MRK | 21.4 | 28.2 | 32.8 |
| Morgan Stanley | MS | 28.9 | 29.6 | 30.5 |
| Microsoft | MSFT | 27.8 | 30.9 | 26.2 |
| NextEra Energy | NEE | 22.2 | 17 | 50.9 |
| Nvidia | NVDA | 42.8 | 13.9 | 25 |
| Pfizer | PFE | 23.2 | 23.5 | 18.4 |
| PayPal | PYPL | 35.6 | 14.2 | 22.2 |
| Starbucks | SBUX | 21.8 | 10.5 | 31.9 |
| AT&T | T | 30.9 | 50 | 55.7 |
| Verizon | VZ | 24.1 | 29.6 | 35.7 |
| Walgreens Boots Alliance | WBA | 44.6 | 68.6 | 18.8 |
| Wells Fargo | WFC | 31.3 | 23.4 | 33.5 |
| Walmart | WMT | 15.9 | 12.5 | 44 |
| Exxon Mobil | XOM | 23.9 | 13.5 | 47.2 |
Weekly Trade Discussion: Open Positions
Income Wheel Portfolio: Open Positions
Selling Puts: DKNG October 20, 2023, 30 Puts
Original trade published on 9-14-2023 (click here to see original alert)
Current Comments: We sold the October 20, 2023, 30 puts for $0.98. At the time of the alert, DKNG was trading for 31.04.
Now, with DKNG trading for 27.76, the probability of success stands at 27.89%, and the price of the 30 puts sits at $2.89. There are still 26 days left in the October 20, 2023 expiration cycle. If DKNG closes below the 30 put strike at expiration, no worries, we will simply be put shares (100 shares per put contract sold) of DKNG and immediately begin to sell calls against our newly acquired shares.
Covered Calls: PFE October 20, 2023, 35 Calls
Original trade published on 9-14-2023 (click here to see original alert)
Current Comments: We sold the October 20, 2023, 35 calls for $0.58. At the time of the alert, PFE was trading for 34.16.
Now, with PFE trading for 32.69, the probability of success stands at 87.18%, and the price of the 35 calls sits at $0.14. There are 26 days left in the October 20, 2023, expiration cycle. If we see the price dip below $0.10, I’ll most likely buy back the calls, lock in some premium and immediately sell more calls going out further in duration.
Covered Calls: BITO September 29, 2023, 14 Calls
Original trade published on 8-21-2023 (click here to see original alert)
Current Comments: We sold the September 29, 2023, 14 calls for $0.48. At the time of the alert, BITO was trading for 13.41.
Now, with BITO trading for 13.62, the probability of success stands at 72.38%, and the price of the 14 calls sits at $0.12. There are only 5 days left in the September 29, 2023 expiration cycle. If all goes well, I will look to buy our calls back early this week, lock in profits and immediately sell more calls.
Covered Calls: GDX October 20, 2023, 29 Calls
Original trade published on 8-21-2023 (click here to see original alert)
Current Comments: We sold the October 20, 2023, 29 calls for $0.86. At the time of the alert, GDX was trading for 27.61.
Now, with GDX trading for 28.87, the probability of success stands at 52.55%, and the price of the 29 calls sits at $0.86. There are 26 days left in the October 20, 2023 expiration cycle. There’s not much to do at the moment other than allow time decay to slowly work its magic.
Covered Calls: KO October 27, 2023, 59 Calls
Original trade published on 9-14-2023 (click here to see original alert)
Current Comments: We sold the October 27, 2023, 59 calls for $0.95. At the time of the alert, KO was trading for 58.47.
Now, with KO trading for 57.60, the probability of success stands at 68.34%, and the price of the 59 calls sits at $0.63. There are 33 days left in the October 27, 2023 expiration cycle. We are early in the trade so there is little to do other than patiently wait for time decay to accelerate and work its magic.
Covered Calls: WFC October 20, 2023, 44.5 Calls
Original trade published on 9-18-2023 (click here to see original alert)
Current Comments: We sold the October 20, 2023, 44.5 calls for $0.89. At the time of the alert, WFC was trading for 43.44.
Now, with WFC trading for 41.23, the probability of success stands at 83.97%, and the price of the 44.5 calls sits at $0.31. There are 26 days left in the October 20, 2023 expiration cycle. We are early in the trade so there is little to do other than patiently wait for time decay to accelerate and work its magic. However, if we see the price of our calls push below $0.15 over the next week or two, we will most likely buy back our calls, lock in profits and immediately sell more call 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 October 2, 2023.