Cabot Options Institute Income Trader: Alert (BITO)
Bitcoin (BITO)
We allowed our BITO calls to expire worthless last week. As a result, we locked in a return of 3.4%. Now it’s time to sell more call premium against our BITO shares. We have managed to reap a total return of just over 105% since introducing Income Trader 16 months ago.
We are not selling naked calls, so you need to have at least 100 shares if you wish to enter a new position in BITO. For those of you that are new to Income Trader and wish to follow along with BITO, buying at least 100 shares of BITO for every call contract you wish to sell is required as we are in the covered call phase of the Income Wheel strategy for BITO.
BITO is currently trading for 14.24.
Here is the trade:
Sell to Open BITO November 17, 2023, 15 (covered) call for $0.47 (adjust accordingly, prices may vary from time of alert).
Delta of short call: 0.37
Probability of Profit: 67.48%
Probability of Touch: 68.68%
Total net credit: $0.47
Max return (cash-secured): 3.4%
As always, if you have any questions, please feel free to email me at andy@cabotwealth.com.