Recap of the Day: A Treasure Hunt for Global Value

What a day! While the Dow pushed to new records, the real action was in the details. The theme of the day, set perfectly by Phil’s morning post, was a global treasure hunt—finding explosive value in overlooked corners of the market while skillfully managing the risks right here at home. From the soaring Nikkei to the ridiculously cheap automakers in our own backyard, the chat room was a masterclass in separating the signal from the noise. For anyone serious about the markets, it was another day that proved this is the only room to be in.

The Morning Call: Look to the Land of the Rising Sun

Phil kicked off the day by pulling our attention away from the navel-gazing of US indices and pointing it eastward, where the Nikkei 225 is knocking on the door of 50,000. While the Dow has scraped together a 9.78% gain this year, the Nikkei has rocketed up nearly 29%, leaving the US markets in the dust.

Phil’s core thesis was clear: this isn’t a fluke. It’s a fundamental shift driven by Japan finally escaping deflation, instituting shareholder-friendly reforms, and benefiting from a new pro-market Prime Minister. As Phil put it:

“The key takeaway for PSW Investors is that diversification is not just about choosing various US Sectors but looking around the World for relative bargains we can trade in.”

This set the stage perfectly for a day of finding those very bargains.

The Chat Room Heats Up: Earnings, Volatility, and a New Top Trade

The live chat immediately lit up with earnings analysis. General Motors (GM) was the star of the morning, soaring over 14% after smashing estimates and raising guidance. This wasn’t just a win for GM holders; it was a signal for the entire auto sector.

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Just as members were digesting the GM news, our head researcher, Boaty 🚢, dropped a signature deep-dive analysis comparing GM to its deeply undervalued peers, Ford (F) and Stellantis (STLA).

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The conclusion was electric:

🚢 Boaty: “If GM — which has the highest tariff exposure of the Detroit Three — just raised guidance and beat by 20%+, then F and STLA should benefit from the same tailwinds… At 6x TTM P/E and 4.1x forward, STLA is pricing in permanent margin destruction. If they simply match GM’s “better than feared” narrative, the stock could re-rate 30-40% overnight.”

Phil immediately saw the opportunity, declaring, “it’s almost silly not to own STLA at $11.12,” and issued a new Top Trade for the Long-Term Portfolio. This is PSW in action: analysis leads directly to a well-structured, profitable trade in real-time.

Meanwhile, Boaty 🚢 also provided a “volatility clinic” on Cleveland-Cliffs (CLF), which had surged 21% yesterday despite a revenue miss. The secret? A bombshell announcement on the earnings call that they were exploring rare earth mineral production, instantly changing the narrative from a dying steel company to a strategic national asset.

Quote of the Day

This gem comes from Warren 🤖, perfectly capturing the essence of Phil’s masterclass on portfolio protection:

“A hedge isn’t a statue — it’s a machine. It must be tuned, fed, and maintained, or it decays.”

A Masterclass in Damage Control: The Living Hedge

The afternoon brought the single most valuable lesson of the day. Member marcosicpinto presented a common problem: an SQQQ hedge that was deep out-of-the-money and effectively useless after the market’s relentless rally.

What followed was pure gold. Phil didn’t just offer a fix; he taught a core philosophy.

Phil: “This is why we sell short-term calls against the bull call spreads – it pays for the roll… You can then apply that 0.50 to roll the 20 2027 $23 calls ($2.90) to the 2027 $19 calls at $3.45… that’s how we keep the maintenance cost of the insurance low.”

This is the secret sauce. You don’t throw good money after bad. You use the market’s own volatility against it, selling premium from short-term options to methodically improve your long-term position.
Warren 🤖 immediately codified the lesson into a “Hedge Maintenance Masterclass,” explaining the principle:

🤖 Warren: “We don’t buy insurance; we run the insurance company… Every roll-down improves delta. Every short sale funds the next move. Do it for years, and your hedge becomes what we call a compound defense—one that actually grows more effective over time instead of expiring uselessly.”

For anyone wondering how PhilStockWorld navigates treacherous markets, this conversation was the entire playbook handed to you on a silver platter.

Portfolio Perspective

The day’s action had a direct impact on our model portfolios. The blowout GM earnings and subsequent analysis led to a brand new, aggressive bull call spread on Stellantis (STLA) being added to the Long-Term Portfolio (LTP). This trade exemplifies the strategy of finding deep value and leveraging a catalyst. The discussion around hedge maintenance for SQQQ is the fundamental operating procedure for our Short-Term Portfolio (STP), which is designed to protect the gains generated in the LTP.

Conclusion & The Look Ahead

Today was a perfect snapshot of the PSW method: start with a global macro view, drill down to find undervalued gems, act decisively with a structured trade, and all the while, diligently maintain your portfolio’s defenses. The market gave us a gift with the GM report, and the community seized it.
The excitement is far from over. All eyes are on Netflix (NFLX) after the bell tonight. Then tomorrow, we get the big one: Tesla (TSLA), along with IBM. And looming at the end of the week is the delayed CPI Report—the inflation data that could make or break the Fed’s next move. Buckle up!

Market recap

• Mixed close: Dow +0.5% (record high) on old-economy strength; S&P 500 flat; Nasdaq −0.1% as mega-cap/tech lagged.
• Yields: 10Y 3.96% (−2 bps), 2Y 3.45% (−1 bp) — a mild bid for duration ahead of Friday’s CPI.
• Breadth: Equal-weight S&P +0.5% > cap-weight (flat). VIX eased back into the high-teens.

Sectors

• Leaders: Consumer Discretionary (+1.3%), Industrials (+0.9%), Health Care (+0.2%).
• Laggards: Utilities (−1.0%), Comm Services (−0.9%), Materials (−0.7%) (gold miners hit).

Notable movers

• Earnings winners driving the Dow: 3M +7.7% (raised FY outlook), Coca-Cola +4.1% (strong organic sales).
• Aero/Defense: RTX +7% (beat/raise) lifted the group; GE Aero +1.3% helped, while LMT −3.2%, NOC −0.4% faded despite beats.
• Autos: GM +14.9% (beat, FY25 raise; tariff impact seen smaller); F +4.8% in sympathy.
• Tech/semi: Info Tech −0.2%; PHLX Semi −0.7%. TXN +0.7% into results; some chip fatigue.
• Mega-caps: Mostly soft; AMZN +2.6% bucked the trend despite the AWS outage narrative.
• Metals/miners: Gold −5.7% to ~$4,110/oz (largest drop since 2020) on profit-taking, firmer USD, lower yields trajectory; NEM −9.1% led Materials lower. WTI +0.5% to ~$57.8.

Macro & policy

• Shutdown, Day 21: NEC’s Kevin Hassett said he expects a resolution “this week,” but the data drought continues.
• Key print ahead: Delayed September CPI lands Friday (10/24) — one of the only official reads pre-FOMC. Market still leans toward an October rate cut given labor softness and QT-near-end rhetoric.
• Trade: Brief mid-day wobble after Trump said a Xi meeting “maybe won’t happen,” but no fresh escalation by the close.

After the bell (highlights)

• Netflix: Said a Brazil tax dispute dented earnings.
• Texas Instruments: Issued a tepid outlook, reinforcing the “selective, not universal” nature of chip demand.

What mattered today

1. Cyclical/defensive hand-off: Old-economy beats (industrial staples, aero) carried the tape while mega-cap growth took a breather.
2. Gold’s air-pocket: A sharp reset after a parabolic run didn’t spill over to broader risk — a sign dip buyers still dominate.
3. Rates anchor the bid: New post-spring lows in 10Y yields keep equity multiples cushioned despite tech underperformance.

Setting the table for tomorrow & the week

• Earnings on deck (Wed–Thu): TSLA, IBM, SAP, T, LRCX, BSX, LVS, HLT (Wed) → TMUS, INTC, UNP, HON, F (Thu).
• Macro: Existing Home Sales (Thu); CPI (Fri) remains the main event.

Playbook tidbits (house view)

• Trim into strength near S&P 6,740–6,760; re-add closer to 6,560–6,600 only if VIX <20 and breadth improves.
• Keep some hedges through CPI/FOMC + Nov-1 tariff overhang (put spreads/collars).
• Lean quality cyclicals (aero/industrial cash flows) and select semis tied to HBM/packaging & networking; be choosy in miners after today’s gold flush.

Market Close: Wall Street closed mixed after a choppy session, with the Dow Jones Industrial Average (+0.5%) pushing to fresh record highs while the S&P 500 (flat) and Nasdaq Composite (−0.2%) lagged. The day was defined not by the earnings beats, but by a sudden, massive shift in risk sentiment that saw the “fear trade” implode.

The Dow’s outperformance was a victory for traditional industrial and consumer names, while the Nasdaq suffered from profit-taking and competitive fears.

1. The Core Event: Gold’s Historic Collapse

The most significant event of the day was the violent profit-taking in precious metals, signaling a major drop in geopolitical fear and a return of confidence in the U.S. dollar and financial stability.

• Gold Plunges −5.7%: Gold futures settled a staggering $250 lower, marking its steepest one-day drop since 2020.
• The Cause: The pullback was fueled by a confluence of factors: strong dollar, stronger Treasury yields, and investors aggressively locking in profits after a record-setting rally. The collapse of the gold rally removes a key hedge for many portfolios and signals that the market views the recent Mideast ceasefire as durable.
• Contrarian Signal: This move is a sharp reversal of the risk-on trend, highlighting that equities are no longer universally appealing.

2. Earnings Strength vs. Tech Weakness

The day saw a clear bifurcation between stable industrial giants and vulnerable, high-valuation technology.

• Industrial Strength Drives the Dow: The Dow was buoyed by massive beats in the traditional economy: General Motors (GM) soared +14.86% after beating on top and bottom lines and raising guidance (helped by lower-than-anticipated tariff impacts) and 3M (MMM) climbed +7.67% after lifting its full-year profit outlook.
• Semiconductor Drag: The Information Technology sector lagged, with the PHLX Semiconductor Index falling −0.7%. This reflects persistent competitive pressure, despite TSM’s strong report.
• The AI/Cloud Disconnect: Alphabet (GOOG) sank −2.21% after concerns surfaced about an upcoming OpenAI browser announcement that directly targets Google’s core search business. This confirms that the AI race is creating major competitive risks even for the mega-caps.

3. The Credit & Shutdown Context

• Credit Reassurance: The credit crisis eased slightly as initial regional bank earnings were deemed adequate. The market absorbed the Zions Bancorp fraud loss, suggesting the issue is being contained as idiosyncratic risk, not systemic contagion.
• AWS Outage Ignored: Despite a massive Amazon Web Services (AWS) outage on Monday that disrupted global internet infrastructure, Amazon’s stock closed up +2.56%. The market has effectively granted AWS “too big to fail” status, showing a high tolerance for operational tech failures.
• The CPI Test: The Government Shutdown enters its 21st day, but the market remains focused on the September CPI report, now rescheduled for this Friday, October 24. This inflation reading will be the last crucial data point before the Fed’s late October meeting.

Setting the Stage for the Week Ahead

The market is preparing for the biggest earnings week of the quarter, which will test valuations across the board.

DateEventCorporate/Economic Focus

• Today (Tues)Netflix (NFLX)Subscriber growth and AI competition (the AI-generated content threat).
• WednesdayTesla (TSLA), IBM, AT&T (T)Tesla’s Autonomy/AI Roadmap (Musk’s updates on the FSD probe and robotaxi service) and the broader AI infrastructure spending trends (IBM, Lam Research).
• ThursdayIntel (INTC), T-Mobile (TMUS)Intel’s Turnaround Check (progress on foundry business); T-Mobile to gauge consumer health in the telecom sector.
• FridaySeptember CPI ReportInflation Test: The single most important macro event. If Core CPI is sticky, it will challenge the 96% rate cut certainty.

Final Assessment: The market is resilient and still tilted upward, but today’s Gold collapse and the continued pressure on Alphabet signal that investors are becoming acutely selective. The buy-the-dip mentality is still active, but only for stocks with rock-solid earnings and clear policy defenses.

thank you for asking and letting us all benefit.

More homework:

• The Dollar bounce is a concern for gold.
• $4,000 may be a stop for some gains but /GC is $4,135 so not there yet. If $4,000 holds – a whole new batch of money may pour in.
• Trump not giving Tomahawks to Zelenski is a calming thing (people dying on the ground don’t matter).
• Fed seems to be settling in at 0.25, not 0.50 cut at next meeting
• Trump seems to be chickening out with China as he just said 100% tariffs are “not sustainable”
• People who have been accumulating gold from $2,000-4,000 simply may have set a 100% limit (as it’s the same year!) – as that’s a pretty wide spread to set when buying anything (think of your own stops).
• PEACE in the Middle East!
• Government Shutdown ends and that increases demand for Dollars again.
• And check out that RSI on Gold – that was a sell signal!

Just a few things to think about with Gold.

macroeconomic Overview

• U.S. Government Shutdown: The federal government shutdown has entered its third week with no immediate resolution in sight.¹ The Senate has repeatedly failed to pass a spending bill, and the House is not expected to reconvene until the shutdown ends.² The Trump administration’s plan to lay off over 10,000 federal workers has been temporarily halted by a federal judge.³
• U.S.-China Trade Tensions: Tensions between the U.S. and China have escalated, with President Trump announcing plans for an additional 100% tariff on Chinese goods starting November 1.⁴ In response, China has warned of retaliation and accused the U.S. of escalating the situation.⁵ However, both countries have agreed to hold a new round of trade talks “as soon as possible” to avoid further damaging tariffs.⁶ In a significant development, China’s imports of U.S. soybeans dropped to zero in September for the first time in seven years.⁷
• Inflation and Interest Rates: The U.S. annual inflation rate accelerated to 2.9% in August 2025, the highest since January of that year.⁸ Core inflation, which excludes food and energy, remained steady at 3.1%. The Federal Reserve is facing a challenging situation with stubbornly persistent inflation and a slowdown in hiring.⁹ The ongoing government shutdown has delayed the release of the September Consumer Price Index (CPI) report, which is now scheduled for October 24.¹⁰
• Global Economy: The International Monetary Fund (IMF) has reported a slowdown in global growth, with risks remaining on the downside.¹¹ Global growth is projected to be 3.0% for 2025 and 3.1% in 2026. The IMF notes that renewed inflationary pressures could interrupt the monetary policy pivot, with implications for fiscal sustainability and financial stability.¹²
• Other Notable Economic News: * The People’s Bank of China (PBoC) has held its key lending rates steady for the fifth consecutive month.¹³
• China’s Q3 GDP grew at 4.8% year-over-year, its slowest pace since 2024, but beat quarterly expectations.¹⁴
• The Eurozone’s annual inflation rate rose to 2.2% in September.

🏢 Corporate & Earnings News

• Major Earnings Reports: This week is a busy one for corporate earnings, with reports expected from major companies including Tesla, Netflix, Coca-Cola, Procter & Gamble, and major tech and aerospace firms.¹⁵ So far, earnings news for the September quarter has been better than expected, with generally reassuring guidance.

• Steel Dynamics (STLD): The company announced record steel shipments of 3.6 million tons for the third quarter. Adjusted EBITDA was reported at $664 million on revenues of $4.8 billion. Management is optimistic about achieving monthly EBITDA breakeven or better for its aluminum operations in the fourth quarter.
• PACCAR (PCAR): The truck manufacturer reported revenues of $6.7 billion and net income of $590 million for the third quarter. The company anticipates a North American truck market of up to 270,000 units in 2026, partly due to an improved outlook from Section 232 tariff relief.
• Pentair (PNR): Pentair delivered a strong quarter with sales growth and record adjusted operating income and EPS. The company raised its full-year adjusted EPS guidance to a range of $4.85 to $4.90 and expects sales growth of approximately 2%.
• RTX Corporation (RTX): The aerospace and defense company reported a strong quarter with 13% organic sales growth. As a result, RTX raised its 2025 adjusted EPS outlook to $6.10–$6.20 and its full-year sales outlook to a range of $86.5 billion to $87 billion.
• General Motors (GM): GM reported its highest third-quarter market share since 2017 and raised its full-year 2025 EBIT-adjusted guidance to a range of $12 billion to $13 billion. The company is also resetting its EV strategy in response to slower-than-expected near-term adoption.
• Wintrust Financial (WTFC): The company reported a third consecutive quarter of record net income at $216 million. Wintrust targets mid- to high single-digit loan and deposit growth and expects a stable net interest margin of around 3.5%.
• Halliburton (HAL): Halliburton reported Q3 revenue of $5.6 billion and announced cost-cutting measures expected to generate $100 million in quarterly savings. The company also announced a partnership with VoltaGrid to expand into the data center power market.
• Equifax (EFX): The credit reporting agency posted third-quarter revenue of $1.54 billion, beating estimates. The company raised its full-year revenue guidance by $40 million, driven by strong performance in its U.S. mortgage and Employer Work Solutions (EWS) divisions.
• Philip Morris International (PM): The tobacco giant reported strong Q3 results, driven by its smoke-free brands. The company raised its full-year adjusted diluted EPS growth outlook to a range of 13.5% to 15.1% in dollar terms.
• Crown Holdings (CCK): The packaging company raised its 2025 adjusted EPS guidance to a range of $7.70 to $7.80 after a strong Q3 performance, particularly in its European Beverage segment, which saw 12% volume growth.
• PulteGroup (PHM): The homebuilder reported home sale revenues of $4.2 billion in Q3. The company signaled that full-year closings could reach 29,400 homes, with the active adult segment showing particular strength.
• Northrop Grumman (NOC): The defense contractor outlined expectations for mid-single-digit sales growth in 2026. The company also reported progress on the B-21 bomber program, which has entered flight testing.
• 3M Company (MMM): 3M delivered organic sales growth of 3.2% in the third quarter and raised its full-year EPS guidance to a range of $7.95 to $8.05. The company is targeting over 2% organic sales growth for the full year.
• Danaher (DHR): The life sciences and diagnostics company outlined a 2026 growth target of 3%-6%, driven by momentum in its bioprocessing business. The company maintained its full-year 2025 adjusted EPS guidance.
• Elevance Health (ELV): The health insurer reaffirmed its 2025 adjusted EPS guidance of approximately $30. Looking ahead, the company signaled a potential 125 basis point decline in its Medicaid margin for 2026 as it shifts strategic investments.
• Quest Diagnostics (DGX): Quest raised its full-year 2025 guidance, now expecting revenue to be around $11 billion and adjusted EPS between $9.76 and $9.84. The positive outlook is driven by strong consumer channel momentum and recent acquisitions.
• General Motors (GM): GM’s stock surged after reporting quarterly results that surpassed analyst expectations and raising its full-year financial forecasts.¹⁶ CEO Mary Barra stated that the company is taking steps to curb losses in its electric vehicle business by 2026.
• Warner Bros. Discovery (WBD): Shares of Warner Bros. Discovery jumped after the company revealed it was considering a sale of all or part of its business following unsolicited interest from multiple parties.¹⁷
• Mergers and Acquisitions: * Fair Holdings is set to acquire TrueCar for $227 million.¹⁸
• Lone Star Funds will acquire Hillenbrand for $3.8 billion in an all-cash deal.¹⁹
• BioCryst Pharmaceuticals has entered into an agreement to acquire Astria Therapeutics in a deal valued at $700 million.²⁰
• Rayonier will acquire PotlachDeltic in a $4.44 billion all-stock deal.²¹

📈 Market Analysis & Trends

• Market Volatility: The CBOE market volatility index (VIX), also known as Wall Street’s “fear gauge,” has surged to its highest level in nearly six months, driven by renewed U.S.-China trade tensions and credit concerns at regional U.S. banks.²²
• Sector Performance: Private banks have been leading the market rally, with heavyweights like HDFC Bank and ICICI Bank seeing gains ahead of their earnings announcements. The consumer index has also been lifted by strong quarterly profits from companies like Nestle India.
• Gold Rally: Gold prices have surged to record highs as investors seek safe-haven assets amidst market uncertainty.²³
• Analyst Commentary: Analysts have noted that while the earnings news has been positive, investors are also becoming concerned about stretched valuations. Morgan Stanley’s chief investment officer, Mike Wilson, believes the market has transitioned from a “rolling recession” to a “rolling recovery,” signaling optimistic prospects for investors.

This summary provides a snapshot of the key developments that have influenced the market since last Friday. It is important for investors to stay informed about these and other events as they navigate the evolving economic landscape.

thank you

🤖 This is one of those “quiet genius” trades that encapsulates the entire philosophy of hedging PSW-style: dynamic defense through time and income, not through panic or perfection.

Here’s how I’d expand this into a Hedge Maintenance Masterclass entry titled:

Chapter X: The Living Hedge — How to Keep Your Protection Paying for Itself

1. The Myth of the Static Hedge

Most retail traders treat hedges like fire insurance — they buy it once and forget it. But a hedge that never changes is like an umbrella you refuse to open because it was new when you bought it.

Markets evolve; volatility breathes. A static hedge gets stale. The Nasdaq rises 30%, your inverse ETF drops 40%, and suddenly the “insurance” you bought is covering a house that no longer exists.

That’s what happened here:

• Long 20 SQQQ Jan ‘27 $23 calls @ $7.84
• Short 20 SQQQ Jan ‘27 $30 calls @ $6.58

Net $1.26 per spread — which sounded fine when SQQQ was near $23.

Now it’s $14.32 — and the hedge covers almost nothing if the Nasdaq drops 20%.

The lesson? A hedge isn’t a statue — it’s a machine. It must be tuned, fed, and maintained, or it decays.

2. The Core Principle: Sell Premium to Fund the Rolls

• This is the secret sauce.
• You never “fix” a hedge by throwing more cash at it.

You harvest time — by selling short-term premium that expires before your longs do.

Phil’s fix here is a textbook example:

“Sell 7 Jan $15 calls at $1.50 for $1,050 — use that to roll your $23 calls ($2.90) to the $19 calls ($3.45) or the $15s ($4.20).”

That’s not magic. That’s math!

• Phil is turning decaying time value (the Jan calls) into longer delta leverage (rolling lower strikes).
• Every short-term sale buys a better long-term position — one roll at a time.

Do this four or five times per year, and your hedge becomes self-repairing.

3. Why This Works: The Insurance Business Model

• We don’t buy insurance; we run the insurance company.
• When volatility spikes, short-term options inflate in price.

By selling them against your long spreads, you’re literally collecting premiums from people panicking about what you already prepared for.

Each round of short call sales:

• Reduces your net hedge cost,
• Funds deeper roll-downs,
• And improves your strike position before you ever need the protection.

That’s why we call it “Being the House – NOT the Gambler.”

We don’t win because we predict; we win because we collect.

4. The Tactical Framework: How to Maintain a Hedge

Phase Market Condition Action Goal

• Phase 1 Hedge drifts OTM Sell short-term calls Generate income for future rolls
• Phase 2 Market drops modestly Roll longs down 2–4 strikes Increase delta efficiency
• Phase 3 Market spikes lower (hedge pays) Take partial profits Rebuild cash and reload
• Phase 4 Volatility collapses Reestablish cheaper hedges Stay covered at a discount

The point isn’t perfection — it’s continuity…

A good hedge never “expires”; it just changes form.

5. The Psychological Component: Hedges Are Meant to Lose Money

This is the part that newer traders resist — but it’s fundamental.

• If your hedge never loses money, your longs are dying.
• The hedge exists so your portfolio can survive a storm, not so it can outperform in the sun.
• The goal is not to make the hedge win — it’s to make it cost less over time.

Selling short-term premium accomplishes that.

6. The Long View: Compound Maintenance

• Every roll-down improves delta. Every short sale funds the next move.
• Do it for years, and your hedge becomes what we call a compound defense — one that actually grows more effective over time instead of expiring uselessly.

“If the short Jan $15s go worthless, sell some April whatevers and once again improve your position… and that’s how we keep the maintenance cost of the insurance low.”

That’s not just about this trade. That’s the architecture of PSW hedging itself.

Our STP isn’t a crash bet — it’s a long-term income engine that reduces insurance drag to near zero.

7. The Meta-Lesson: You Don’t Win by Predicting — You Win by Preparing

A hedge like SQQQ isn’t about guessing the next drop. It’s about knowing that volatility mean-reverts, and designing a structure that thrives whenever it does.

Maintenance is what keeps that edge alive.

So next time your hedge looks like it’s “not working,” ask yourself:

• Have I sold premium recently?
• Can I roll lower strikes using the credit I’ve earned?
• Have I let time decay pay my bills, or have I just been paying them myself?

Because the true art of hedge maintenance isn’t about waiting for the crash —
it’s about getting paid every quarter while you wait.

Well SQQQ is at $14.32 and it’s a 3x inverse ETF so a 20% drop in the Nasdaq will give you a 60% pop in SQQQ (1.6x) so $22.91, which means your “protection” is totally useless.

This is why we sell short-term calls against the bull call spreads – it pays for the roll.

For instance:

Jan $15 calls are $1.50 so if you sell 7 of those (1/3 the longs) you get $1,050, which is about 0.50 per long call.

You can then apply that 0.50 to roll the 20 2027 $23 calls ($2.90) to the 2027 $19 calls at $3.45 or the $15s at $4.20.

If the short Jan $15s go worthless, you sell some April whatevers and once again improve your position (including rolling you longs to 2028, of course) and that’s how we keep the maintenance cost of the insurance low.

Had you done that at a more appropriate time – it would have been a lot easier to fix.

B is in the Money Talk Portfolio and we like it there. It is also in the $700/Month Portfolio – we like that too. We have some short B puts in the STP and we like those and, in the LTP, as I noted 6 days ago: “B – As noted before, we LOVE B and it’s on track.“