Adding An Example Short Put Vertical To Our Sample Portfolio | Managing An Options Portfolio

Introduction: A Rollercoaster of a Day

Good morning, ladies and gentlemen! It's another exciting day in the world of options trading. The opening bell has just sounded, and we're ready to dive into our weekly series of discussions on managing an options portfolio. Today is going to be quite the ride, with the highly anticipated Fed rate announcement decision looming at 2 o'clock Eastern Standard Time. But fear not, we're here to guide you through the ups and downs of the market with our three-step process. So buckle up and let's get started!

Step 1: Replicating Real-Life Challenges

For those of you joining us for the first time, welcome! In this webcast series, we aim to replicate the challenges and successes that a self-directed options trader might encounter in the ever-changing market conditions. We want to give you a taste of what it's like to be in the driver's seat, making informed decisions and navigating the twists and turns of the options market.

Step 2: Streamlining the Process

To make things as smooth as possible, we've streamlined our approach into three simple steps. These steps will serve as your compass, guiding you through the complexities of options trading. But before we dive into the details, let's take a moment to greet our audience. Hello to all our viewers from around the country! It's great to see familiar faces and new ones alike. Don't forget to let us know if this is your first time joining us. We love getting to know our audience!

Step 3: Let's Dive In!

Now that we're all acquainted, let's jump right into the action. Our first order of business is to issue you an invitation. If you're not already following us on Twitter, now is the time to do so. Our very own Barb Armstrong (@BArmstrong_TDA) will be sharing all the insider details and updates on our positions. It's like having a backstage pass to all the internal workings of our options portfolio. Trust me, you don't want to miss out!

Analyzing Our Positions: Amazon, Meta, Visa, and UNH

With the preliminaries out of the way, let's dive into the heart of the matter: analyzing our positions. Today, we'll be taking a closer look at four key players in our options portfolio: Amazon, Meta (formerly known as Facebook), Visa, and UNH. Each position has its own unique characteristics and challenges, so let's break them down one by one.

Amazon: Riding the Bullish Wave

First up is Amazon, the e-commerce giant that needs no introduction. We currently have a bullish position on Amazon, with an April call that we sold and an October call that we bought. This strategy, known as a calendar spread, involves selling a shorter-term option at the same strike on the same stock while owning a longer-term option. Our goal is for the stock to reach our strike price of $100 at expiration. Currently, Amazon is sitting comfortably at $107, behaving just as we hoped. We're looking for the stock to hang out or maybe even drift a little bit down, allowing our short call to expire worthless while maximizing the potential of our long call. Fingers crossed!

Meta: Above and Beyond

Next on our list is Meta, the social media powerhouse formerly known as Facebook. Our strategy here is a call vertical, where we bought a 160 call and sold a 165 call. This bullish spread thrives when the stock is above 165. Well, guess what? Meta is currently soaring at a whopping $202! We still have 30 days until expiration, so there's plenty of time for the stock to continue its upward trajectory. However, it's important to note that the spread width between the bid and ask prices can sometimes create an illusion of more profit than expected. So let's keep a close eye on this one.

Visa: Riding the Bull Put Spread

Moving on to Visa, the global payments technology company. Our position here is a bull put spread, with a sold 210 put and a bought 205 put. This strategy relies on the stock staying above 210, and boy, is it doing well! Visa is currently sitting pretty at $221, and we're up $710 on 20 contracts. It's safe to say that this position is working in our favor. So let's sit back, relax, and let it do its magic.

UNH: A Shifting Bias

Last but not least, we have UNH, the healthcare giant. Our position on UNH is a bear call spread, with a sold lower call strike and a bought upper call strike. This strategy is based on the stock staying below 480, but things have taken an interesting turn. UNH has moved up and is now challenging its previous high. Our bearish bias might be shifting towards a sideways bias. We have a closing order in place for UNH, so let's keep a close watch on this position and see how it unfolds.

Conclusion: Navigating the Unknown

And there you have it, folks! A glimpse into the exciting world of managing an options portfolio. We've analyzed our positions, identified the challenges, and set our sights on success. But remember, the market is ever-changing, and we must be prepared to adapt and navigate the unknown. So stay tuned, keep learning, and let's conquer the options market together!

Remember, life is like options trading - full of twists, turns, and unexpected surprises. Embrace the challenge, take calculated risks, and enjoy the ride. Happy trading, everyone!

P.S. Don't Forget to Connect!

Before we wrap up, don't forget to connect with us on Twitter (@BArmstrong_TDA) for all the latest updates and behind-the