{"id":12770445,"date":"2025-01-14T09:05:27","date_gmt":"2025-01-14T14:05:27","guid":{"rendered":"https:\/\/www.philstockworld.com\/?p=12770445"},"modified":"2025-01-17T15:34:15","modified_gmt":"2025-01-17T20:34:15","slug":"philstockworld-january-portfolio-review-members-only-3","status":"publish","type":"post","link":"https:\/\/www.philstockworld.com\/2025\/01\/14\/philstockworld-january-portfolio-review-members-only-3\/","title":{"rendered":"PhilStockWorld January Portfolio Review (Members Only)"},"content":{"rendered":"<p><strong>S&amp;P 5,836!\u00a0<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12770446\" src=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/SPX-Chart-Jan-14-2025.png\" alt=\"\" width=\"990\" height=\"744\" srcset=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/SPX-Chart-Jan-14-2025.png 990w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/SPX-Chart-Jan-14-2025-300x225.png 300w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/SPX-Chart-Jan-14-2025-768x577.png 768w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/SPX-Chart-Jan-14-2025-150x113.png 150w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/SPX-Chart-Jan-14-2025-696x523.png 696w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/SPX-Chart-Jan-14-2025-265x198.png 265w\" sizes=\"auto, (max-width: 990px) 100vw, 990px\" \/><\/p>\n<p><strong>That is down 297 <\/strong>(4.8%)<strong> points from our <a href=\"https:\/\/www.philstockworld.com\/2024\/12\/17\/philstockworld-december-portfolio-review-members-only-3\/\" target=\"_blank\" rel=\"noopener\">Dec 17th Review<\/a> and we since took a spill and a recovery and now a spill again &#8211; very exciting! Fortunately, our hedges are holding things together and, as I just so happened to say last month, at S&amp;P 6,133:\u00a0\u00a0<\/strong><\/p>\n<p style=\"padding-left: 40px;\"><strong><span style=\"color: #0000ff;\">&#8220;<em>We actually could have done better if we didn\u2019t hedge but, then again, if we didn\u2019t hedge \u2013 we would not have felt comfortable taking the long-side risks that brought us to this point \u2013 would we? If we didn\u2019t hedge, I would certainly be calling for us now to take the money and run but we\u2019re well-hedged for a 20% drop in our Short-Term Portfolio (STP) \u2013 so we\u2019re not expecting to get caught by surprise and, to some extent, these recent gains are also a hedge \u2013 though it\u2019s hard to think of them that way, isn\u2019t it?<\/em>&#8221;\u00a0\u00a0<\/span><\/strong><\/p>\n<p><strong>BALANCE is the key to long-term success in trading so let&#8217;s start this Review off by looking at the Short-Term Portfolio <\/strong>(STP)<strong>, where our hedges reside. $710,192 is up $198,782 <\/strong>(38.8%)<strong> since our last review and that&#8217;s exactly what our $1M worth of hedges are supposed to do when the S&amp;P drops 4.8% <\/strong>(as 20% should be $1M)<strong>.\u00a0\u00a0<\/strong><\/p>\n<p><strong>Our long trades and short puts are hedges on hedges in the STP and we&#8217;re quick to take profits as they are only there to help pay for our greater insurance plays:<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/STP-Jan-14-2025-1736860572.0989.jpg\" alt=\"STP Jan 14 2025.jpg\" width=\"706\" height=\"924\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Short Puts: DIS, GNRC and TOL are about to expire worthless for a gain of $16,115. Let&#8217;s make sure we&#8217;re comfortable with the rest:\u00a0<\/li>\n<li>DHI &#8211; It&#8217;s down 63.5% but it&#8217;s a net $133.26 entry and DHI is at $138.40 so we&#8217;re not actually in trouble, other than the premiums &#8211; which will eventually burn off.\u00a0 I&#8217;d save a roll for if we ACTUALLY get in trouble.\u00a0<\/li>\n<li>EXPE &#8211; Up 77.5% with a year to go is almost something we would close &#8211; if we were not so deep in the money that we have no fear of it going against us.\u00a0\u00a0<\/li>\n<li>GOLD &#8211; We would LOVE to buy this for net $12.85 so no worries.\u00a0<\/li>\n<li>HUM &#8211; Our target was well-placed as we bounced off $240 and, with Trump back in town, Health Insurers can start printing money again.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011425\/HUMd082427533i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>IMAX &#8211; Should expire worthless in March.\u00a0<\/li>\n<li>LEVI &#8211; Though below our target, it&#8217;s still green and I have confidence &#8211; <strong><span style=\"color: #0000ff;\">Good for a new sale!<\/span><\/strong>\u00a0<\/li>\n<li>MMM &#8211; Well over our target.\u00a0<\/li>\n<li>MRK &#8211; Stocks move from our Watch List to short puts and, if the short puts go red we check our premise to see if we want to make it a long play and we definitely do with MRK so <strong><span style=\"color: #0000ff;\">let&#8217;s move these ($24,825) to 15 short 2027 $110 puts at $16.50 ($24,750) in the LTP and add (in the LTP) 25 2027 $90 calls at $20.50 ($51,250) and we&#8217;ll sell 20 of the 2027 $120 calls for $7.30 ($14,600)<\/span><\/strong> and, since we originally collected $14,820 for the short puts and paid $75 to roll them, we&#8217;re in the new $75,000 spread for all of net $21,905 with an <strong><span style=\"color: #339966;\">upside potential of $53,095 (242%)<\/span><\/strong> and, would you look at that! We&#8217;re already $27,050 in the money! Aren&#8217;t options fun?\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011425\/MRKd083693372i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>MRNA &#8211; We already have MRNA in the LTP with 30 short $50 puts so <strong><span style=\"color: #0000ff;\">we&#8217;re just going to close these<\/span><\/strong> and make our adjustment to the LTP position.\u00a0\u00a0<\/li>\n<li>MU &#8211; I love these guys. <strong><span style=\"color: #0000ff;\">Great for a new trade<\/span><\/strong>.\u00a0<\/li>\n<li>NKE &#8211; Already in the LTP but, at $72.08, I have much more confidence in NKE coming back and our net is only $71.70 so we&#8217;ll just wait and see how earnings go.<\/li>\n<li>PHM &#8211; Too far in the money to worry about.<\/li>\n<li>RTX &#8211; Also miles in the money but, <strong><span style=\"color: #0000ff;\">for $770 &#8211; it&#8217;s a waste of space so let&#8217;s close it<\/span><\/strong>.\u00a0<\/li>\n<li>TGT &#8211; On track.<\/li>\n<li>TROX &#8211; I have faith and we&#8217;re net $9 anyway.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>We collected about $215,000 in short call payments and, as long as we are Ready, Willing AND Able to pick up those positions at the promised net prices &#8211; then it&#8217;s just free money. Yes, I&#8217;d love to own 1,000 share of MRK at net $110.18. It&#8217;s at $100.98 now and we could have taken the assignment and owned the stock down $10 &#8211; and then we would have sold puts and calls against it to lower the basis.\u00a0 As it stands, we made the above adjustment and all is well.\u00a0\u00a0<\/strong><\/p>\n<p><strong>As the market is shaky, we took a closer than usual look at our short put positions but there aren&#8217;t many worries up there so, unlike the fall, we&#8217;re not rushing to cash them out.\u00a0 Our current net $24,000<\/strong>(ish)<strong> profit is our buffer at the moment &#8211; if that turns red &#8211; maybe we will cut these obligations but, for now &#8211; I&#8217;m not worried enough to bail.\u00a0\u00a0<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>SQQQ &#8211; Loose bits we&#8217;ll discuss later.<\/li>\n<li>BBY &#8211; Messy but profitable and surprisingly all on track so let&#8217;s see how earnings look.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011425\/BBYd085411906i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>CPER &#8211; We just wanted to see how this idea would play out. Perfectly so far.\u00a0\u00a0<\/li>\n<li>F &#8211; Not that I don&#8217;t like F but this is definitely not going to be a short-term play so <strong><span style=\"color: #0000ff;\">we&#8217;ll move this to the LTP.\u00a0 The calls ($20,000) will roll to 200 2027 $8 calls at $2.50 ($50,000, $70,000 total) and the short $14.82 puts ($12,750) can roll to 100 2027 $10 puts at $2 ($20,000)<\/span><\/strong>.\u00a0 \u00a0<\/li>\n<li>SKX &#8211; Already at\u00a0 target.\u00a0 We&#8217;re making a bit of money on these short calls so <strong><span style=\"color: #0000ff;\">now we can sell 7 April $70 calls for $6 ($4,200)<\/span><\/strong> to put a bit more money in our pocket.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011425\/SKXd090464287i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>SQQQ &#8211; Oddly enough, this $600,000 spread is now entirely in the money at net (don&#8217;t forget the ones above) $72,735 so we still have <strong><span style=\"color: #ff0000;\">net $527,265 of downside protection<\/span><\/strong> if the Nasdaq stays down here. I&#8217;m not worried about the short 2026 $40 calls or the 2026 $25 puts and the short March $30 calls are in the money but net $33 so still a bit of premium and we can always roll them along.\u00a0 Should the Nas break lower on earnings, we can simply add more long spreads at $165,000 per $600,000 &#8211; so not worried at all!\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011425\/SQQQd091533341i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>TZA &#8211; Still well out of the money at $13.66 and we gave 1,200 $10s that are $3.66 in the money ($439,000) and they are covering 400 short and rollable April $12 calls which are half premium at the moment. The short 2026 $45s are ignorable and the Jan $22s are going worthless so, if we assume the Russell drops 20% and TZA goes up 60% to $21.85, then 800 $10 calls would be $11.85 in the money for $948,000 and let&#8217;s say $5 more for 400 $10\/15 spreads (after rolling) is $200,000 for $1,148,000 and the current net is $383,200 so we have <strong><span style=\"color: #ff0000;\">$764,800 of downside potential<\/span><\/strong> from our TZAs against a 20% drop.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>So we are happy with our income offsets and we have $1,202,065 of downside protection remaining AFTER we made close to $200,000 in the past months. I think we&#8217;d almost rather the markets keep going down than up with all these hedges! We&#8217;ll keep that in mind when making adjustments to our long portfolios.\u00a0\u00a0<\/strong><\/p>\n<p><strong>$700\/Month Portfolio Review:<\/strong> <a href=\"https:\/\/www.philstockworld.com\/2025\/01\/07\/how-to-become-a-millionaire-by-investing-700-per-month-part-29-360\/\" target=\"_blank\" rel=\"noopener\">One week ago we were down $2,429<\/a> from our <a href=\"https:\/\/www.philstockworld.com\/2024\/12\/10\/how-to-become-a-millionaire-by-investing-700-per-month-part-28-360\/\" target=\"_blank\" rel=\"noopener\">Dec 10th Review<\/a> at $35,952 and now we&#8217;re up $2,733 at $38,685 and that&#8217;s <strong><span style=\"color: #339966;\">up 90.6% overall<\/span><\/strong> and those are the vagaries of options pricing that we need to learn to accept.\u00a0<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12770561\" src=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/700-Jan-14-2025.jpg\" alt=\"\" width=\"1316\" height=\"1347\" srcset=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/700-Jan-14-2025.jpg 1316w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/700-Jan-14-2025-293x300.jpg 293w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/700-Jan-14-2025-1000x1024.jpg 1000w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/700-Jan-14-2025-768x786.jpg 768w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/700-Jan-14-2025-150x154.jpg 150w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/700-Jan-14-2025-300x307.jpg 300w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/700-Jan-14-2025-696x712.jpg 696w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/700-Jan-14-2025-1068x1093.jpg 1068w\" sizes=\"auto, (max-width: 1316px) 100vw, 1316px\" \/><\/p>\n<p><strong>The only changes we made were rolling the TROX calls from May to Nov and doubling down and that was a good call:<\/strong><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011425\/TROXh124741331i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>And we added 10 more 2027 $8 calls to VALE, also worked out:<\/strong>\u00a0<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011425\/VALEh124744419i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>This is a low-touch portfolio and we only have $5,721 to spend but we WILL be looking for bargains in the earnings reports (or the reactions to them).\u00a0\u00a0<\/strong><\/p>\n<p><strong>Money Talk Portfolio Review:<\/strong> Even lower-touch than the $700\/Month Portfolio because we can only trade the MTP live on Bloomberg when I do the show &#8211; and that&#8217;s about once every three months. HOWEVER, <a href=\"https:\/\/www.philstockworld.com\/2024\/12\/04\/philstockworld-2025-trade-of-the-year\/\" target=\"_blank\" rel=\"noopener\">I was just on the show on the 4th<\/a> and we added 3 new trades (XOM, LMT and SYF) but XOM took a dive along with LMT and SYF has been flat so no luck this month and we&#8217;re down from $112,560 to $108,048 but that&#8217;s still <strong><span style=\"color: #339966;\">up 8%<\/span><\/strong> on a portfolio we started in August and we only have net $23,542 invested so that&#8217;s up 51.9% since Aug &#8211; a pretty good start!\u00a0<\/p>\n<p><a href=\"https:\/\/www.philstockworld.com\/moneytalk\/\" target=\"_blank\" rel=\"noopener\">Other adjustments were made on Dec 3rd<\/a> (the day we tape) and I&#8217;m not going to review this one again but here&#8217;s where we stand at the moment (<a href=\"https:\/\/www.philstockworld.com\/2024\/12\/05\/phil-on-money-talk-market-optimism-top-trade-ideas-and-new-trade-of-the-year\/\" target=\"_blank\" rel=\"noopener\">and here is are the actual show segments<\/a>):\u00a0\u00a0<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12770562\" src=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/MTP-Jan-14-2025.jpg\" alt=\"\" width=\"1321\" height=\"1313\" srcset=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/MTP-Jan-14-2025.jpg 1321w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/MTP-Jan-14-2025-300x298.jpg 300w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/MTP-Jan-14-2025-1024x1018.jpg 1024w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/MTP-Jan-14-2025-150x149.jpg 150w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/MTP-Jan-14-2025-768x763.jpg 768w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/MTP-Jan-14-2025-696x692.jpg 696w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/MTP-Jan-14-2025-1068x1062.jpg 1068w\" sizes=\"auto, (max-width: 1321px) 100vw, 1321px\" \/><\/p>\n<p><strong>We planned to play cautiously through Q1 earnings and I&#8217;ll be on the show again in a month and THEN we will start to get a bit more aggressive but this is a great way to spread $23,542 around as they have $117,093 of upside potential &#8211; and we&#8217;re just getting started!\u00a0<\/strong><\/p>\n<p>** Thursday **<\/p>\n<p><strong><img decoding=\"async\" class=\"alignright\" src=\"https:\/\/charts-node.finviz.com\/chart.ashx?cs=m&amp;t=@VX&amp;tf=d&amp;s=linear&amp;ct=candle_stick&amp;r=\" alt=\"VIX Chart Daily\" \/>Butterfly Portfolio Review:<\/strong> $907,455 is <strong><span style=\"color: #339966;\">up $189,815 (26.4%)<\/span><\/strong> <a href=\"https:\/\/www.philstockworld.com\/2024\/12\/17\/philstockworld-december-portfolio-review-members-only-3\/\" target=\"_blank\" rel=\"noopener\">since our last review<\/a> as we are nailing our targets right into annual expirations when, as we expected, ALL PREMIUM EXPIRES WORTHLESS! That is the very key to the Butterfly Portfolio &#8211; we sell a ton of premium and most of it expires annually and, in that last month &#8211; if we are on track (and we adjust all year to keep ourselves on track) &#8211; things rapidly go our way.\u00a0\u00a0<\/p>\n<p>Also in our favor, since we sell a lot of premium, is that the VIX has fallen 25%, from 20+ to 16 since Dec 19th and that means the implied premium on our short puts and calls is way down this month. Next month &#8211; who knows?\u00a0\u00a0<\/p>\n<p><strong>Still, it&#8217;s a process we can rely on and the Butterfly Portfolio is always our steadiest gainer as it embodies our &#8220;<em><a href=\"https:\/\/www.youtube.com\/watch?v=w5WVljziKj4&amp;list=PL2IfH8YqPLfaGYC3aI-lXnRJTQrPwE8bv&amp;index=4\" target=\"_blank\" rel=\"noopener\">Be the House &#8211; NOT the Gambler<\/a><\/em>&#8221; philosophy:<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12771307\" src=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Butterfly-Jan-16-2025-scaled.jpg\" alt=\"\" width=\"1035\" height=\"2560\" srcset=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Butterfly-Jan-16-2025-scaled.jpg 1035w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Butterfly-Jan-16-2025-121x300.jpg 121w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Butterfly-Jan-16-2025-414x1024.jpg 414w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Butterfly-Jan-16-2025-768x1899.jpg 768w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Butterfly-Jan-16-2025-621x1536.jpg 621w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Butterfly-Jan-16-2025-828x2048.jpg 828w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Butterfly-Jan-16-2025-150x371.jpg 150w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Butterfly-Jan-16-2025-300x742.jpg 300w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Butterfly-Jan-16-2025-696x1721.jpg 696w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Butterfly-Jan-16-2025-1068x2641.jpg 1068w\" sizes=\"auto, (max-width: 1035px) 100vw, 1035px\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>AAPL &#8211; We sold those April $250 calls at just the right time and now we&#8217;re up $56,850 so let&#8217;s take half (30) off the table and see how earnings go. The short $210 puts will go worthless so <strong><span style=\"color: #0000ff;\">let&#8217;s sell 15 April $230 puts for $6.30 to put another $9,450 in our pockets<\/span><\/strong> and balance out the short calls a bit.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/AAPLd045195148i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>And there&#8217;s the point of the Butterfly Portfolio. We should always be asking ourselves: &#8220;<em>What Premium can I sell?<\/em>&#8221; It is our JOB to sell premium and it&#8217;s that premium that gives us consistently steady performance<\/strong> (we choose range-bound stocks for this portfolio).<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>BHP &#8211; The Jan $60 puts are in the money but fortunately we sold them for $8.70, so not much damage. We are aggressively long here but I&#8217;m comfortable with our target so <strong><span style=\"color: #0000ff;\">let&#8217;s roll the 5 short Jan $60 puts ($5,100) to 10 short 2026 $55 puts at $9 ($9,000)<\/span><\/strong> and we&#8217;ll see how earnings look. <strong><span style=\"color: #0000ff;\">Also, as the 20 short 2027 $55 puts are only $10.50, I want to roll them to the 2026 $55 puts to deprive them of a year for net $1.50 ($3,000)<\/span><\/strong>. We can always roll them back but, if we hit it, we can almost double our collections.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/BHPd045858990i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>BP &#8211; The short Jan calls are going worthless and the short puts are a bit in the money but still a $1,240 profit since Sept and the rest of the spread is net $6,455, so we made 19.2% in 4 months &#8211; not bad. Now we need to keep the rest on track so <strong><span style=\"color: #0000ff;\">let&#8217;s buy back the short 2026 $40 calls, as they are up 80% and the 10 2026 $35 puts at $5.73 ($5,725) can be rolled to 15 short 2027 $30 puts at $4 ($6,000)<\/span><\/strong> and with oil back at $80 I&#8217;m not inclined to sell any more calls until we see earnings &#8211; I think BP breaks up this Q.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/BPd051023094i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>CSCO &#8211; I love these guys! We have huge gains on the $40 calls and we&#8217;ve already taken some profits. The short Jan $50 puts are expiring worthless for a nice $1,900 gain and the 2026 $45 puts are not worth buying back as we don&#8217;t believe CSCO will drop 25% and, if it does, we&#8217;d be THRILLED to own the stock at that price. <strong><span style=\"color: #0000ff;\">I guess we should cash in the 2026 $40 calls at $41,550 and let&#8217;s roll the short $50 calls ($10,200) and the short 2027 $60 calls ($16,750) to 50 short 2027 $67.50 calls at $5.50 ($27,500) and we&#8217;ll buy 50 2027 $55 calls for $11 ($55,000)<\/span><\/strong>.\u00a0 That&#8217;s net $12,900 spent but now we have a $62,500 spread that&#8217;s $25,000 in the money with 2 years to sell more puts and calls.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/CSCOd052237986i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>DAL &#8211; Exploded higher but only AT our March target (still all premium) and higher oil prices means higher fuel costs so we&#8217;ll wait and see how earnings go.\u00a0<\/li>\n<li>DIS &#8211; A bit over our March target but we&#8217;re $80,000 in the money on our longs so we&#8217;re just calling this &#8220;on track&#8221;. Once we get rid of the short March calls, we will work off the rest of the short $110s. This is very much a patience game&#8230;<\/li>\n<li>DOW &#8211; The short $52.50 calls are going worthless and we already sold March so &#8220;on track.&#8221;<\/li>\n<li>IBM &#8211; The short April $215 calls show a $25,025 loss at $74,375 but IBM is at $220.03 so they are $5 in the money and worth just $25,000 for a $24,350 gain if they expired today. That&#8217;s quite a discrepancy and we have to be aware of that in options trading. Premium is TEMPORARY! We are especially not worried as we have 100 $210 calls so this is just &#8220;<em>on track<\/em>&#8221; with 2 years to roll&#8230;\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/IBMd053153107i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>IP &#8211; Over our April target but we&#8217;ll let this one play out through earnings.\u00a0<\/li>\n<li>JNJ &#8211; We just added this one, taking advantage of the dip and already it&#8217;s recovering and exactly on target for our April shorts.\u00a0 \u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/JNJh053584364i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>KO &#8211; We will see how earnings go.\u00a0<\/li>\n<li>MAT &#8211; <strong><span style=\"color: #0000ff;\">The 10 short Jan $20 puts ($2,100) can be rolled to 10 short April $20 puts at $2.50 ($2,500)<\/span><\/strong>.\u00a0\u00a0<\/li>\n<li>PFE &#8211; This is a $95,000 spread at $30 and currently net $24,712 &#8211; <strong><span style=\"color: #0000ff;\">I&#8217;m tempted to double down but let&#8217;s see earnings<\/span><\/strong>.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/PFEw054347985i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>RIG &#8211; Very on track.<\/li>\n<li>TAN &#8211; Betting on solar under Trump? Well it was a contrarian play&#8230; I don&#8217;t have the conviction to roll the long calls down. <strong><span style=\"color: #0000ff;\">The short Jan $43s are going worthless for $3,250 but the 15 short Jan $40 puts ($8,475) need to be rolled to 25 short April $35 puts at $3.10 ($7,750) and we&#8217;ll see how that goes<\/span><\/strong>.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/TANd054993125i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>TD &#8211; On track.\u00a0<\/li>\n<li>VALE &#8211; We&#8217;d be thrilled if we had to roll the short March $10 calls so &#8220;on track&#8221; (for the new spread, the old $8 calls need a nice move up).<\/li>\n<li>WHR &#8211; We were just discussing how great they are in yesterday&#8217;s Webinar. The short Jan puts are going worthless for a $5,850 gain and we are currently burned on the short March $115s but let&#8217;s respect the channel and let it play out. Worst case is we just buy more longs to cover and roll the short calls.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/WHRd055496098i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>Income Portfolio Review:<\/strong> $551,205 is up $67,392 (13.9%) since our last review and we didn&#8217;t make many changes in December as we thought we were well-positioned &#8211; and I guess we were&#8230; The Income Portfolio is more conservative than the Butterfly Portfolio or the LTP as the primary purpose is to bring in at least 2% per quarter in income from the sale of options and dividends.\u00a0<\/p>\n<p>Obviously, as we&#8217;re now up 267%, we&#8217;re well ahead of schedule after our first 20 months but, with $265,133 (48%) in CASH!!! on the sidelines &#8211; we can certainly afford to take a few chances &#8211; especially as we are so well-hedged and haven&#8217;t needed it at all (in any of our portfolios).\u00a0<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12771415\" src=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Income-Jan-16-2025.jpg\" alt=\"\" width=\"1321\" height=\"2464\" srcset=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Income-Jan-16-2025.jpg 1321w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Income-Jan-16-2025-161x300.jpg 161w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Income-Jan-16-2025-549x1024.jpg 549w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Income-Jan-16-2025-768x1433.jpg 768w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Income-Jan-16-2025-823x1536.jpg 823w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Income-Jan-16-2025-1098x2048.jpg 1098w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Income-Jan-16-2025-150x280.jpg 150w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Income-Jan-16-2025-300x560.jpg 300w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Income-Jan-16-2025-696x1298.jpg 696w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/Income-Jan-16-2025-1068x1992.jpg 1068w\" sizes=\"auto, (max-width: 1321px) 100vw, 1321px\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Short Puts &#8211; BCS and SOFI are expiring worthless and M looks healthy so I guess we should look for more short puts to sell.<\/li>\n<li>INTC &#8211; We added this one and it&#8217;s not doing well so that probably means we can sell puts here and also adjust our long calls, right? <strong><span style=\"color: #0000ff;\">The 2027 $22 calls are $5.20 and the $17 calls are $7.35 so + $2.15 ($10,750) to roll down $5 ($25,000) seems like a good idea &#8211; let&#8217;s do that and pay for it by selling\u00a0 \u00a020 2027 $20 puts for $4.75 ($9,500)<\/span><\/strong>.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/INTCd112731668i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>PFE &#8211; We&#8217;re almost in the money on these already (from November!), though it&#8217;s still just net $36,350 on the $70,000 spread so <strong><span style=\"color: #339966;\">$33,650 (92.5%) upside potential at $27<\/span><\/strong> makes it hard not to buy more of this!\u00a0\u00a0<\/li>\n<li>BXMT &#8211; Over our short put target and on track for the full gain.<\/li>\n<li>CMBT &#8211; Also on track.<\/li>\n<li>FLG &#8211; Despite showing a loss, our net cost for the spread was $6.70 ($26,800) and the spread is at net $4.505 ($18,020) and if we get called away at $12, that will be $48,000 for <strong><span style=\"color: #339966;\">a potential gain of $29,980 (266%)<\/span><\/strong> &#8211; <strong><span style=\"color: #0000ff;\">GREAT FOR A NEW TRADE!<\/span><\/strong> Not only that, we pocketed $5,000 in profits from the first set of short calls and puts.\u00a0 Aren&#8217;t options fun?\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/FLGd113802047i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>This is a great example of how we use options to lower our basis. We began with 2,000 shares at $14.25 <\/strong>($28,500)<strong> and we sold $15 calls <\/strong>($3,500)<strong> and $12 puts <\/strong>($7,280)<strong>. Last month we cashed in the short puts and calls with a $4,720 profit, dropping our net to $9,530 and we doubled down to 4,000 shares at an $11.60 average <\/strong>($46,400)<strong> and sold the new puts and calls for $19,600. That means we have now spent net $26,800 for 4,000 shares or $6.70 per share and our short calls are $10s and the short puts are $12s <\/strong>(the top of the range)<strong>.<\/strong><\/p>\n<p><strong>That&#8217;s it. Simply selling those puts and calls allowed us to buy 2,000 shares for net $17,720 <\/strong>($8.86\/share)<strong> when the stock was at $14.25 and, when that didn&#8217;t work out, we simply doubled down at $8.97 and sold more puts and calls to drop our net to a very comfortable $6.70 per share &#8211; half of where we started. So by scaling into the stock and selling puts and calls &#8211; we have dropped our basis 50% in a year and we&#8217;re still in position to make a nice profit. Options are fun!\u00a0 <\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>NLY &#8211; At our target already. We&#8217;re in it for the dividends so all good with us.\u00a0\u00a0<\/li>\n<li>CIM &#8211; Also in it for the dividends.\u00a0\u00a0<\/li>\n<li>CROX &#8211; The Jan $110 puts are expiring with an $8,550 profit &#8211; that&#8217;s nice and the short $130 calls are going to go completely worthless for another $20,210 and a clean slate. <strong><span style=\"color: #0000ff;\">The 10 short Jan $135 puts are down $21,850 and we can roll those along to 20 MORE (30 total) 2026 $100 puts at $15 ($30,000)<\/span><\/strong> and how insane is the premium on the short March $100 calls? I almost want to sell more but let&#8217;s see how earnings go.\u00a0 Don&#8217;t forget that the short March calls can be rolled to longer dates and higher strikes &#8211; that&#8217;s why we&#8217;re not concerned.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/CROXd115908513i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>INTC &#8211; We got more aggressive above and this set has the short Jan $21 puts expiring with a small profit and that leaves us with 40 short $25 puts that I think are obtainable and then 50 long $20 calls against the all but dead March $25 calls and the short $30 calls so I think we&#8217;re all good here into earnings.\u00a0<\/li>\n<li>JACK &#8211; If not for the fires, I&#8217;d be all over this but this is what AI is for! How many JACKS are there? <strong>150 company stores, 2,041 franchise stores.<\/strong> How many in LA county? <strong>42<\/strong>. Well then fires are no reason not to buy and JACK was already down after warning about a challenging 2025 but we&#8217;re in it for the long haul. <strong><span style=\"color: #0000ff;\">Let&#8217;s roll our 20 short March $52.50 puts at $28,300 to 40 short Oct $40 puts at $7.50 ($30,000)<\/span><\/strong> and we&#8217;re looking good otherwise.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/JACKd120708732i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>KO &#8211; Right on track.\u00a0<\/li>\n<li>PFE &#8211; The rest of the spread looks just fine.\u00a0 The short Jan $30s are going worthless and we already sold short March calls at the current price (all premium) with no danger of being burned so we&#8217;ll see how earnings go.\u00a0<\/li>\n<li>SOFI &#8211; $16!!! Told you so! We actually sold too many short calls now but, as I noted &#8211; we&#8217;re happy to buy more longs but, for now, we&#8217;re locking in our $125,000 spread that&#8217;s net about $90,000 at the moment. <strong><span style=\"color: #0000ff;\">Let&#8217;s clean up by buying back the short 2026 $15 calls ($24,750), the short 2026 $12 calls ($32,125) and the short Jan $8 calls ($24,375) and roll them to 100 short June $16 calls at $3.10 ($31,000) and 50 short June $15 puts at $2 ($10,000)<\/span><\/strong> for a net cost of $40,250 which brings our net on the spread from net $6,860 to $47,110 on the $125,000 spread and, of course, we still have 18 months to sell more puts and calls!\u00a0 <strong>FUN!!!<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/SOFId121921456i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>T &#8211; Also told you so! Over our target already and <strong><span style=\"color: #0000ff;\">we&#8217;ll just roll the 30 short Jan $20 calls at $1.97 ($5,910) to 40 short July $22 calls at $1.50 ($6,000)<\/span><\/strong> and now we&#8217;re fine &#8211; so easy!\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/Td122923030i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>UNG &#8211; Blasted over our target and it&#8217;s a $25,000 spread at net $13,895 &#8211; so plenty to gain.\u00a0 It&#8217;s designed to be rolled along so <strong><span style=\"color: #0000ff;\">let&#8217;s roll the 15 short Jan $15 calls ($5,625) to 20 short April $19 calls at $2.40 ($4,800)<\/span><\/strong>. That&#8217;s fine as we sold them for $3,300.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/UNGd123321460i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>VALE &#8211; Waiting for this to get in gear.\u00a0\u00a0<\/li>\n<li>WBA &#8211; This one finally got in gear! The $12.50 calls are going almost worthless and <strong><span style=\"color: #0000ff;\">now we can sell 20 April $12.50 calls for $1.70 ($3,400)<\/span><\/strong>. Remember, that&#8217;s our job &#8211; selling premium!\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011625\/WBAd123694157i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>The net of the spread is $19,325 and it&#8217;s a $35,000 spread. We collected $2,160 <\/strong>(11% profit)<strong> since July and now we&#8217;re 100% in the money and we&#8217;re selling another $3,400 <\/strong>(17.5%)<strong> for 90 more days while we wait for the spread to mature. That&#8217;s a good business plan! The short calls not only give us an income but they also protect us against a downturn.\u00a0\u00a0<\/strong><\/p>\n<p><strong>Long-Term Portfolio Review (LTP):<\/strong> $3,310,356 is up 562% since we started with our usual $500,000 on May 16th, 2023 and <a href=\"https:\/\/www.philstockworld.com\/2024\/12\/17\/philstockworld-december-portfolio-review-members-only-3\/\" target=\"_blank\" rel=\"noopener\">up $219,674 (7%) from our last review<\/a> and, interestingly, we only added one trade since last month (OZK) &#8211; not including the STP adjustments above. That was due to a combination of holidays and choppy markets &#8211; where we preferred to hold onto our cash into earnings season.\u00a0<\/p>\n<p>There are only actually $1,497,228 worth of positions and the rest ($1,813,128 &#8211; 55%) is in CASH!!! and that&#8217;s why our $1M+ worth of hedges in the STP that protects the LTP and our other portfolios is MORE THAN ADEQUATE to protect against a 20% market drop. That means &#8211; as planned &#8211; that we are Ready, Willing AND Able to pounce on opportunities, as they are presented to us.\u00a0\u00a0<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12771768\" src=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-1-Jan-16-2025.jpg\" alt=\"\" width=\"1329\" height=\"2415\" srcset=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-1-Jan-16-2025.jpg 1329w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-1-Jan-16-2025-165x300.jpg 165w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-1-Jan-16-2025-564x1024.jpg 564w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-1-Jan-16-2025-768x1396.jpg 768w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-1-Jan-16-2025-845x1536.jpg 845w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-1-Jan-16-2025-1127x2048.jpg 1127w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-1-Jan-16-2025-150x273.jpg 150w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-1-Jan-16-2025-300x545.jpg 300w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-1-Jan-16-2025-696x1265.jpg 696w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-1-Jan-16-2025-1068x1941.jpg 1068w\" sizes=\"auto, (max-width: 1329px) 100vw, 1329px\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Short puts &#8211; We&#8217;re saying goodbye to CIEN and HBI is very deep in the money. MGM is on track and we don&#8217;t mind buying VALE for net $8.75, which is the current price. That means there&#8217;s PLENTY of room to sell puts and we love selling puts on earnings sell-offs we don&#8217;t agree with (as it tends to spike the VIX and give us great entries).\u00a0\u00a0<\/li>\n<li>JPM &#8211; Net $156,700 on the $180,000 spread is almost not worth keeping with just <strong><span style=\"color: #339966;\">$23,300 left to gain<\/span><\/strong> but we don&#8217;t need the money and we&#8217;re 90% sure we&#8217;ll collect the full $180,000 so<span style=\"color: #000000;\"> we may as well collect 14.8% <\/span>on this position rather than add it to our cash pile for now.<\/li>\n<li>AAPL &#8211; This was half our gains for the month as the short April $250 calls we sold for $140,000 are now $30,800 as AAPL has taken a dive. It was a consolidation play of all our short calls and AAPL&#8217;s run was $175 to $240 and that&#8217;s $65 so the 5% Rule\u2122 says $13 segments apply which is $227 (weak retrace), $214 (strong retrace) and that&#8217;s also the 200 dma &#8211; so it&#8217;s very likely to hold. $201 is the strong bounce line and $188 would be the weak bounce line where we&#8217;d by turning it into an all-AAPL portfolio!\u00a0<\/li>\n<li>While AAPL is not likely to get back over $250 by April, <strong><span style=\"color: #0000ff;\">there&#8217;s no reason not to buy back half (40) of the short April $250s<\/span><\/strong> &#8211; just in case earnings is better than expected. We took a chance and we won &#8211; why push it? In fact, <strong><span style=\"color: #0000ff;\">we should put a stop on the rest at $5 ($20,000)<\/span><\/strong> to lock in $100,000 gain and we can always sell more.\u00a0 If the rest do expire worthless, we will then roll our short Dec $200 calls to something higher and shorter-term and, if AAPL goes lower &#8211; it will be time to sell some puts.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/AAPLd062904081i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>ADP &#8211; We cashed in our original longs and left the short calls in hopes of a pullback but we didn&#8217;t get much of one. Our $300\/340 bull call spread is net $67,000 out of $160,000 &#8211; so there&#8217;s some upside potential that covers our short calls but they are all in the money so <strong><span style=\"color: #0000ff;\">let&#8217;s bite the bullet and buy them all back ($162,850) and roll our LOSS ($86,115) to 60 short March $300 calls at $9 ($54,000)<\/span><\/strong> and trust the process of premium decay to begin recouping our losses with 7 more quarters to sell and roll ($350,000 potential!).\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/ADPd064456141i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>AKAM &#8211; Waiting for them to bounce back.<\/li>\n<li>BA &#8211; At goal on the long spread and on track overall at net $29,600 on the $175,000 spread with <strong><span style=\"color: #339966;\">$145,400 (491%) upside potential<\/span><\/strong> if BA is over $180 and below $220. <strong><span style=\"color: #0000ff;\">This is why the LTP makes so much money &#8211; that&#8217;s just one trade!<\/span><\/strong>\u00a0\u00a0<\/li>\n<li>BBY &#8211; Right on track and the short Jan $92.50 calls are going worthless for a $9,350 gain since October. I think they are oversold at the moment but earnings are late Feb so <strong><span style=\"color: #0000ff;\">let&#8217;s sell 7 Feb $85 calls for $1.80 ($1,260) and 7 Feb $80 puts for $1.80 ($1,260)<\/span><\/strong> as they expire pre-earnings and then we&#8217;ll sell something else.\u00a0 $2,520 is 10.8% of the $23,312 net of the $40,000 spread that&#8217;s almost entirely in the money &#8211; not a bad self-dividend for 35 days, right?\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/BBYd070022162i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>BRK.B &#8211; I&#8217;m sorry we were so timid with our entry as we&#8217;re already at the money. Almost perfectly on track with our short Jan $460 calls with a $6,800 profit and <strong><span style=\"color: #0000ff;\">the $400\/470 spread has $49,000 potential at net $44,005 so that&#8217;s a waste so we&#8217;ll cash that in and pick up 20 2027 $440 at $82.50 ($165,000) and we&#8217;ll sell 17 2027 $480 calls for $58 ($98,600) and we&#8217;ll buy back the short $400 puts ($3,925) and we&#8217;ll sell 10 2027 $420 puts for $17.50 ($17,500) and we&#8217;ll sell 5 April $475 calls for $11 ($5,500) and 5 April $450 puts for $8 ($4,000)<\/span><\/strong>.<\/li>\n<li>We&#8217;ve spent net $9,320 to move from a $49,000 spread (that we paid $11,425 for in August) to an $80,000 spread where we just sold 90 of our 728 days for $9,500. 6 more sales like that can generate $57,000 in additional income while we wait for our $59,255 (285%) upside potential. That puts the total potential return up over 500% and we&#8217;re not even counting the profits on the short $460 calls ($6,800) we&#8217;re cashing in from the original trade!<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/BRK-Bd071590389i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>BYON &#8211; The short Jan calls are going worthless and <strong><span style=\"color: #0000ff;\">let&#8217;s buy back the short 2026 $25 calls ($1,100) just to clear the slot (you can do things like that when you&#8217;re up $2.5M). Let&#8217;s roll our 20 short 2026 $15 puts ($18,800) to 25 2026 $12.50 puts at $7.10 ($17,750)<\/span><\/strong> as it&#8217;s a more possible goal with more premium (so we&#8217;re less likely to get assigned). Then we&#8217;ll see what happens with the short March calls but we sold them for $7,125 in November and, if we can do that every 4 months &#8211; we will be happy campers!<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/BYONd073419251i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>CLF &#8211; The Jan $12 calls are going worthless for an $8,250 gain and the rest of the spread is net $4,850 with 150 $10 calls and 100 short $17 calls and some short puts. So <strong><span style=\"color: #0000ff;\">it&#8217;s our duty to sell more premium and the April $11 calls are $1.05 and 50 of those is $5,250<\/span><\/strong> &#8211; <strong><span style=\"color: #339966;\">which is 108% for 90 days<\/span><\/strong> and we have 20 months to roll them if CLF goes up so it would be silly not to take the money &#8211; even if we do hope CLF pops on earnings.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/CLFd074037316i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>You can&#8217;t let your desire to hit a home run stop you from hitting a single &#8211; that is one of the psychological keys to trading! In this case, we have 50 uncovered $10 calls but we ALSO have 100 $10\/17 spreads so we&#8217;ll be VERY HAPPY if CLF pops $2 and burns us on the 50 short $11s, which we&#8217;ll roll anyway. Passing up a sure $5,250 with 6 more chances ($30,000) to go in HOPES of CLF moving up is simply not a good strategy. You have to take the emotion out of the game.\u00a0\u00a0<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>COIN &#8211; Talk about a money-maker! This is a triple-dip at this point as the high volatility of COIN gives us endless chances to sell premium. <strong><span style=\"color: #0000ff;\">The short March $320 calls are up $148,625 and BTC hit record highs last Q so I think it would be prudent to take half of those off the table for $58,937.50 ahead of earnings<\/span><\/strong>.\u00a0 My logic is they go up and we&#8217;re glad and we roll the short calls or they go down and the remaining short calls go worthless and we sell more short calls and short puts so, either way, we have a shit-ton of premium to sell in our future!\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/COINd075998328i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>CROX &#8211; There&#8217;s no business like shoe business, right? We cashed out the original and the short Jan $130 calls are going worthless for $13,510 and the short Jan $140 calls are going worthless for $10,220 and the short Jan puts are up $17,650 so that&#8217;s a $41,380 profit for our premium-selling business in Q4 against a net LESS THAN $0 spread &#8211; pretty good, right?\u00a0 The upside potential on the $100\/115 spread that&#8217;s net $60,500 is $89,500 (147%) and, while we wait, <strong><span style=\"color: #0000ff;\">we may as well roll the 40 short 2026 $110s ($70,000) to 50 short March $105 calls at $7.60 ($38,000) and sell 25 short March $105 puts at $9.30 ($23,250)<\/span><\/strong> and, in March, when we&#8217;re doing the review and booking another $30,000 or so in profits for 63 days, you will say &#8220;<em>gosh, I wish I had seen that one<\/em>&#8220;.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/CROXd081061458i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>CRSP &#8211; Now here&#8217;s one I don&#8217;t want to cover. Earnings should be early Feb.<\/li>\n<li>CSCO &#8211; Love these guys.\u00a0 It&#8217;s a $75,000 spread but we&#8217;re getting burned on the short calls BUT we have 2 years to roll so not worried. We&#8217;ll see how the short March calls end up before adjusting anything else. This is another one of those times when patience is key.\u00a0<\/li>\n<li>DIS &#8211; Exactly on track for this one and that&#8217;s why we have a $108,875 profit already (started in June) but it&#8217;s at net $233,715 on the $400,000 spread so <strong><span style=\"color: #339966;\">on track for a nice double at $120 PLUS nice income potential along the way<\/span><\/strong> &#8211; what&#8217;s not to love?\u00a0<\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type: none;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12771832\" src=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-2-Jan-16-2025.jpg\" alt=\"\" width=\"1329\" height=\"2153\" srcset=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-2-Jan-16-2025.jpg 1329w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-2-Jan-16-2025-185x300.jpg 185w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-2-Jan-16-2025-632x1024.jpg 632w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-2-Jan-16-2025-768x1244.jpg 768w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-2-Jan-16-2025-948x1536.jpg 948w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-2-Jan-16-2025-1264x2048.jpg 1264w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-2-Jan-16-2025-150x243.jpg 150w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-2-Jan-16-2025-300x486.jpg 300w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-2-Jan-16-2025-696x1128.jpg 696w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-2-Jan-16-2025-1068x1730.jpg 1068w\" sizes=\"auto, (max-width: 1329px) 100vw, 1329px\" \/>\u00a0\n<ul>\n<li>EQNR &#8211; Just a sort of set and forget play. Last earnings were good so we&#8217;ll see how Feb 5th looks.\u00a0<\/li>\n<li>F &#8211; SUPIDLY cheap at $10.17. The short $14.17 calls are going worthless for a $6,000 gain in 6 months and that leaves us with the short March $11s and we&#8217;ll see how earnings go (Feb 5th) before making changes.\u00a0 <strong><span style=\"color: #0000ff;\">STUPIDLY LOW!!!<\/span><\/strong>\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/Fd104255659i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>FL &#8211; On track.<\/li>\n<li>FLG &#8211; On track. This one is interesting because the spread is at net $14,800 but it&#8217;s a $42,000 spread that&#8217;s $25,200 in the money &#8211; even without being covered. The upside potential is $27,200 if FLG can hit $12 in 12 months. <strong><span style=\"color: #0000ff;\">Not only good for a new trade but should be a Top Trade Alert!<\/span><\/strong> This is another one you&#8217;ll be looking at next year and wondering how you missed it&#8230;\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/FLGd104761544i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>FLR &#8211; I love it when we hit our short call targets on the button on expiration day! That&#8217;s a nice $3,850 in our pocked for 3 months&#8217; &#8220;<em>work<\/em>&#8221; and our $50,000 trade is right on track at net $19,450 so there&#8217;s still <strong><span style=\"color: #339966;\">$30,550 (157%) left to gain<\/span><\/strong> PLUS more short sales like <strong><span style=\"color: #0000ff;\">let&#8217;s sell 10 April $50 calls for $3.60 ($3,600) and 10 April $50 puts for $4 ($4,000)<\/span><\/strong> and that&#8217;s 39% of our basis in our pockets and we&#8217;ll roll the losing side and continue collecting money for 2 years while we wait for our 157% gain &#8211; how&#8217;s that for a plan?\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/FLRd105389763i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>See how much fun this stuff is?!?\u00a0\u00a0<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>GEO &#8211; We&#8217;re taking a $2,650 loss on our short Jan calls but we&#8217;re over our target on our $40,000 spread at net $4,950 so now our net will be $9,000 with <strong><span style=\"color: #339966;\">$31,000 (344%) upside potential<\/span><\/strong> if they don&#8217;t backslide below $30 (-17%) so I&#8217;d say that&#8217;s <strong><span style=\"color: #0000ff;\">great for a new trade<\/span><\/strong> and <strong><span style=\"color: #0000ff;\">let&#8217;s sell 10 March $37 calls for $3.75 ($3,750) to cut 1\/3 off our basis<\/span><\/strong>. And that spike was off a MISS &#8211; imagine if they beat!<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/GEOd105948539i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>GILD &#8211; Another one we got very right. We&#8217;re down $200 on the short Jan $87.50 calls but we&#8217;re up $8,390 on the short Jan $90 calls and no longer covered on our 2026 $30 calls, which we now own for net $20,310 and they are at $98,400 for a gain of $78,090 (384%) for the year (<a href=\"https:\/\/www.youtube.com\/watch?v=79DijItQXMM\" target=\"_blank\" rel=\"noopener\">you&#8217;re welcome!<\/a>).\u00a0 <strong><span style=\"color: #0000ff;\">I guess we&#8217;ll close this one even though I still like GILD long-term &#8211; if anything I would now put it in the Butterfly Portfolio<\/span><\/strong>.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/GILDd110565061i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>And notice these are BLUE CHIPS we&#8217;re making this kind of money from. You DO NOT have to chase fad stocks when you understand how to leverage ordinary value stocks using options.\u00a0<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>GLW &#8211; Another situation where we&#8217;re down $2,025 on the short calls but up $13,000 on the rest of the spread and we have 2 years to roll and the spread is just 3 months old! We&#8217;re 100% in the money on the $45,000 spread at net $18,575 so $26,425 (142%) left to gain if they can hold $47.\u00a0 <strong><span style=\"color: #0000ff;\">Let&#8217;s buy back the short puts ($400) and close the short $47 calls ($10,275) and sell 20 April $50 calls for $3 ($6,000) and 10 2027 $45 puts for $4.40 ($4,400)<\/span><\/strong>.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/GLWd111259484i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>GNRC &#8211; Kind of even so far. It&#8217;s a $240,000 spread at net $91,700 so we have $148,300 (161%) upside potential and <strong><span style=\"color: #0000ff;\">I&#8217;m LOOKING FORWARD to earnings at the end of the month so I can say &#8220;<em>I told you so<\/em>&#8221; on this one as well!<\/span><\/strong>\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/GNRCd111721101i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>GOLD &#8211; If you don&#8217;t know how much I love Barrick, you must be new here&#8230; Still has that new trade smell at net $16,790 on the $70,000 spread with <strong><span style=\"color: #339966;\">$53,210 (316%) upside potential<\/span><\/strong> and we just made $$2,250 (13.4%) in 7 months on the short $15 puts. I don&#8217;t want to sell any more puts or calls until we see earnings and a month or two of Trump 2.0.\u00a0 If it goes lower, we sell puts and widen the spread and, if it goes higher &#8211; we make 316% &#8211; I can live with either.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/GOLDd112321011i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>IMAX &#8211; Pulled back a bit but fortunately we sold $8,500 worth of June calls and $9,000 worth of March calls and we&#8217;re up $12,575 against our $8,250 loss on the June $22 calls so we&#8217;re going to essentially close this position and take our net $4,325 gain (in two months!) and <strong><span style=\"color: #0000ff;\">our new spread will be 50 Sept $21 ($4.30)\/26 ($2) bull call spread at net $2.30 ($11,500) and we&#8217;ll sell 25 Sept $23 puts at $2.70 ($6,750)<\/span><\/strong> and that&#8217;s net $4,750 on the $25,000 spread with <strong><span style=\"color: #339966;\">$20,250 (426%) upside potential<\/span><\/strong> if Wicked, Moana, Gladiator, Sonic and Venom in Q4 and Superman, Fantastic 4 and Avatar can get them back to the top of the channel.\u00a0 <strong><span style=\"color: #0000ff;\">This one is not &#8220;good for a new trade&#8221; &#8211; IT IS A NEW TRADE!!!<\/span><\/strong>\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/IMAXd113534270i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>INTC &#8211; 10% pop this morning! We&#8217;re still WAY behind on this one but way less damage than when I captured the above screen early this morning. They are up on acquisition rumors and they will come and go with INTC trading this low. Our spread is aggressively long but <strong><span style=\"color: #0000ff;\">I want to clean up our short puts ($57,375) but the loss on the puts is only $22,125 so we&#8217;ll just roll the loss to 50 short 2027 $22 puts at $5 ($25,000) and we&#8217;ll take advantage of this pop to sell 30 April $22 calls for $2.10 ($6,300)<\/span><\/strong> and we&#8217;ll see how earnings go (30th).\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/INTCd114330928i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>IVZ &#8211; At our goal already at net $27,075 on the $60,000 spread we bought for net $2,790 last year. That&#8217;s what we call &#8220;<em>on track<\/em>&#8221; with <strong><span style=\"color: #339966;\">another 100% left to gain if they hold $17<\/span><\/strong>.\u00a0 <span style=\"color: #0000ff;\"><span style=\"font-size: 20px;\"><strong>Again, we just find good, solid value plays and then, instead of buying the stock, we use options to leverage the upside potential.\u00a0 When we&#8217;re wrong &#8211; we adjust and when we&#8217;re right &#8211; we make crazy amounts of money!<\/strong><\/span>\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/IVZd114713091i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>JACK &#8211; I love them long-term but options only go out to October. Still, <strong><span style=\"color: #0000ff;\">we can roll the 70 June $40 calls at $34,650 to 100 Oct $35 ($9)\/42.50 ($5.65) bull call spreads at net $3.35 ($33,500) and we&#8217;ll take the $7,000 profit on the short June $52.50s and sell 40 March $42.50 calls at $2 ($8,000)<\/span><\/strong> as we can always roll them back but they&#8217;ll expire twice as fast.\u00a0 We&#8217;ll leave the short puts &#8211; maybe we get lucky&#8230;\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/JACKd115266493i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p>JPM &#8211; Blasted over our goals so we have work to do! We do have those longs above which are going to add $80,000 to our gains but $254 is a bit too high so let&#8217;s:<\/p>\n<ul>\n<li><strong><span style=\"color: #0000ff;\">Cash out the Dec 2026 $200 calls ($568,600) and the short March $210 puts ($2,020) and the short Jan $210 calls ($65,288) and the short 2026 $180 puts ($6,090).\u00a0 That leaves us with net $495,202.\u00a0<\/span><\/strong><\/li>\n<li><strong><span style=\"color: #0000ff;\">We will roll the loss of the March $220 calls ($149,000 &#8211; $289,000 to close) to 80 short July $260 calls at $14.30 ($114,400) and 50 short July $240 puts at $8.70 ($43,500).<\/span><\/strong><\/li>\n<li><strong><span style=\"color: #0000ff;\">We will buy 120 2027 $240 ($46.50)\/290 ($23) bull call spreads for $23.50 ($282,000) to give us some upside protection while we work out the short calls.\u00a0\u00a0<\/span><\/strong><\/li>\n<li><strong><span style=\"color: #0000ff;\">Sell 30 2027 $240 puts for $21.50 ($64,500)\u00a0<\/span><\/strong><\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/JPMd115667750i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>So we&#8217;ve taken net $146,602 off the table and left ourselves with a $600,000 spread covering the short puts and calls.\u00a0 I feel good about that!\u00a0<\/strong>\u00a0<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>LEN &#8211; Blasted past our target before we had a chance to buy more. It&#8217;s a $20,000 spread at net $13,125 so no reason to cash it out.\u00a0<\/li>\n<li>LMT &#8211; <strong><span style=\"color: #0000ff;\">Kind of a gift to be up 50% on the March $525s with earnings on the 28th so let&#8217;s take them off the table and see how it goes<\/span><\/strong>.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/LMTd121140891i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>LOVE &#8211; The short $30 calls are going worthless thanks to a silly dip so <strong><span style=\"color: #0000ff;\">let&#8217;s sell 20 2027 $25 puts for $3.50 ($7,000) and we&#8217;ll sell 20 April $25 puts for $2.50 ($5,000)<\/span><\/strong> for balance against the short April calls. That&#8217;s dropping $12,000 in our pockets and we&#8217;ll be thrilled to get called away at $75,000 off our current (with the above sales) $38,375 net &#8211; <strong><span style=\"color: #339966;\">almost 100% upside potential at $30 &#8211; by July!<\/span><\/strong>\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/LOVEd121547362i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>So what are we doing? Getting more aggressive in the bottom of the channel! Not complicated&#8230;<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12771860\" src=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-3-Jan-16-2025.jpg\" alt=\"\" width=\"1328\" height=\"1922\" srcset=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-3-Jan-16-2025.jpg 1328w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-3-Jan-16-2025-207x300.jpg 207w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-3-Jan-16-2025-708x1024.jpg 708w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-3-Jan-16-2025-768x1112.jpg 768w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-3-Jan-16-2025-1061x1536.jpg 1061w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-3-Jan-16-2025-150x217.jpg 150w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-3-Jan-16-2025-300x434.jpg 300w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-3-Jan-16-2025-696x1007.jpg 696w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-3-Jan-16-2025-1068x1546.jpg 1068w\" sizes=\"auto, (max-width: 1328px) 100vw, 1328px\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>M &#8211; Really took a hard plunge after guidance on Dec 11th. I still like them long-term and we have 100 2026 $12 calls that are actually up $7,400 at $33,000 but, while the stock is low, <strong><span style=\"color: #0000ff;\">let&#8217;s pick up 150 2027 $12 ($4)\/20 ($1.55) bull call spreads at $2.45 ($36,750). The short Jan puts are expiring with a $4,470 profit and the May $14 calls are $1.35, which means we can roll our 100 short Jan $20 calls at 0.70 ($7,000) to 50 short May $14 calls at $1.35 ($6,750)<\/span><\/strong> and suddenly we&#8217;re in the premium-selling business!\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/Md130264268i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>MDT &#8211; So many old people! MDT makes spare parts so I love them long-term. This one has blown over our target but <strong><span style=\"color: #339966;\">still only net $31,260 on the $75,000 spread that&#8217;s 110% in the money<\/span><\/strong>.\u00a0 Don&#8217;t ask me why &#8211; Options are Crazy!\u00a0 That&#8217;s why we love them&#8230;<\/li>\n<li>MO &#8211; We&#8217;re aggressively long and it&#8217;s on track but <strong><span style=\"color: #0000ff;\">I want to be more aggressive and buy back the short calls ($8,860) ahead of earnings (30th)<\/span><\/strong> as Trump 2.0 should be good for them.\u00a0 We&#8217;re up 50% so why not?\u00a0\u00a0<\/li>\n<li>MP &#8211; This one seemed obvious, US-based Rare Earths. <strong><span style=\"color: #0000ff;\">We&#8217;re going to buy back the 2026 $17.50 calls ($35,000) and the March $17.50 calls ($13,200) and sell 70\u00a0 June $20 calls for $4 ($28,000) and 35 June $20 puts for $2.40 ($8,400)<\/span><\/strong> so it&#8217;s costing us net $11,800 for the moment but we&#8217;ll have another sale after that to get back on track. You just have to have faith in the process.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/MPd131799543i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>We don&#8217;t just sell puts for no reason: We can&#8217;t lose money on the June $20 puts unless the June $20 calls expire worthless for a $28,000 gain. Since we collected $8,400 for the puts and we&#8217;ll collect another $28,000 below $20, we&#8217;ve then committed to buy 3,500 shares of MP at $20 ($70,000) less $28,000 less $8,400 which is net net $33,600 or $9.60\/share or less than half the current price.\u00a0 So ALL we did there, since the short calls are decently covered is promise to buy 3,500 shares of MP for $9.60 a share and, if MP goes higher, the $8,400 we make on the short June puts helps pay to roll the short June $20 calls to a higer strike &#8211; with $1.20 each &#8211; which should be enough to push them $2.50 higher.\u00a0<\/strong>\u00a0<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>MRNA &#8211; I think of them more like a start-up so I accept the fact that they are burning cash &#8211; other traders and analysts do not. We have made a fortune selling short calls for more than a year but let&#8217;s clean up this position:\u00a0<\/li>\n<li><strong><span style=\"color: #0000ff;\">Buy back the short 2026 $130s ($1,563) and the Jan $60s are going worthless for a $9,000 gain<\/span><\/strong> and I doubt the March $40 calls hit the money and <strong><span style=\"color: #0000ff;\">let&#8217;s roll the 30 2027 $50 puts ($66,600) to 50 2026 $35 puts at $9.10 ($45,500)<\/span><\/strong> and we were only down $5,700 so it&#8217;s like we sold the 2026 $35 puts for $39,800, which is net $27(ish). They just announced bad news for 2025 ($1Bn less revenue than expected) so I want to wait for earning and see if they bounce.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/MRNAd133125364i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>MU &#8211; The short Jan $115 calls are going worthless for a $7,525 gain (notice how often we say that in this review?) and we are right on track otherwise and earnings are good so I want to wait and see if they hit resistance at $110 or not before selling anything else.\u00a0<\/li>\n<li>NKE &#8211; Another lost sole we picked up along the way. They LOOK cheap on a chart but this is still 33x forward earnings ($3.2Bn) to get to their $105Bn market cap (was $250Bn in 2021!).\u00a0 Our $100,000 spread is net $37,750 but all premium and <strong><span style=\"color: #0000ff;\">we made $27,250 on the short 2026 $120s so let&#8217;s close those for $1,350 and let&#8217;s roll the short puts ($54,125) to 40 short 2027 $75 puts at $12 ($48,000). The 2027 $60 calls are $19.50 so we can spend $25,000 to pick up $50,000 in position on the Dec 2026\u00a0 $70 calls as well.<\/span><\/strong>\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/NKEm134622904i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>OZK &#8211; The only new entry to the LTP in the past month so it must be amazing (it was just a Top Trade)! As we expected they got a nice pop from earnings, so we&#8217;re already up a lot and <strong><span style=\"color: #0000ff;\">now we can sell 5 of the April $50 calls for $2.50 ($1,250)<\/span><\/strong> &#8211; because that&#8217;s our job!\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/OZKd135054549i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>It doesn&#8217;t seem like much but we have 60 positions and even if they were all this small, that&#8217;s 60 x $1,250 = $75,000 for the quarter and $300,000 for the year &#8211; the small things do matter!\u00a0<\/strong>\u00a0<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>PARA &#8211; Waiting for them to be bought for $12.50. No sense in adjusting unless we get some actual facts.\u00a0\u00a0<\/li>\n<li>PFE &#8211; Another lost boy we picked up. PFE makes $16.5Bn a year yet you can buy the whold company for $150Bn (9x earnings). They were last below $30 in early 2020 but in 2020 they made $9Bn on $41.5Bn in sales &#8211; sales are now $63Bn so up 50% along with profits so $26.34 seems downright silly as a price (and they hit $40 by the end of 2020).\u00a0\u00a0<\/li>\n<li>So, we&#8217;re aggressively long at $20 &#8211; I like that. The short puts seem fine as a target, so no reason to change and the short calls seem like a good target too. So, nothing to adjust but it&#8217;s net $55,025 on the $140,000+ spread with <strong><span style=\"color: #339966;\">$84,975 (154%) of upside potential<\/span><\/strong> at $27 in two years &#8211; <strong><span style=\"color: #0000ff;\">great for a new trade, I think<\/span><\/strong>.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/PFEd140274960i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>PRU &#8211; Oh no, insurance! $119.25 is 8x for these guys ($42Bn with $5Bn in profits) and the hard losses in LA are about $50Bn for home insurance and let&#8217;s say PRU has a 10% market share&#8230; you can see how people get worried. <strong><span style=\"color: #0000ff;\">We&#8217;re up 40% on the short $145s so let&#8217;s buy 20 of those back ($12,700)<\/span><\/strong> and see what they have to say at earnings (Feb 4).\u00a0 \u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/PRUd143631463i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>QCOM &#8211; Another one I love (funny how stocks I love end up in my portfolio, right?).\u00a0 How on Earth is every single leg green? That&#8217;s amazing! The short Jan $170s are going worthless for a $30,000 gain, that&#8217;s nice. The short Jan $100 puts also going worthless for an $8,000 gain &#8211; also nice. The leaves the half-covered 130 calls that are on track and let&#8217;s see how earnings go before selling more puts and calls.\u00a0\u00a0<\/li>\n<li>RH &#8211; Another favorite! Killing us at the moment because we sold Jan $350 calls for $105,000 and now they are $230,750! Still our $350\/420 spread is now 110% in the money and RH is a bit ahead of itself so <strong><span style=\"color: #0000ff;\">let&#8217;s cash out our 2027 $350 calls ($910,750) and buy 125 $400 ($160)\/500 ($118.50) bull call spreads for net $518,750 and we&#8217;ll roll our 25 short Jan $350s ($230,750) to 50 short March $450s at $30 ($150,000)<\/span><\/strong> so we&#8217;re covering the $125,750 loss with the new sale. That&#8217;s net $311,250 off the table and we&#8217;re left with the $1,250,000 bull call spread covering 10 short 2026 $300 calls and 50 short March $450 calls and 50 short 2027 $420 calls. We started with a net $62,750 credit and we took $311,250 off the table so we&#8217;re working with $374,000 and all we need to do is get those short calls to go worthless and whatever is left in the spread is just a bonus so, at this point, we&#8217;d be thrilled if RH just collapses &#8211; but just slowing down would be fine.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/RHd145002727i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12771939\" src=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-4-Jan-16-2025.jpg\" alt=\"\" width=\"1328\" height=\"1498\" srcset=\"https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-4-Jan-16-2025.jpg 1328w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-4-Jan-16-2025-266x300.jpg 266w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-4-Jan-16-2025-908x1024.jpg 908w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-4-Jan-16-2025-768x866.jpg 768w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-4-Jan-16-2025-150x169.jpg 150w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-4-Jan-16-2025-300x338.jpg 300w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-4-Jan-16-2025-696x785.jpg 696w, https:\/\/www.philstockworld.com\/wp-content\/uploads\/2025\/01\/LTP-4-Jan-16-2025-1068x1205.jpg 1068w\" sizes=\"auto, (max-width: 1328px) 100vw, 1328px\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>SOFI &#8211; I love these guys! Only net $23,820 on the $160,000 spread so <strong><span style=\"color: #0000ff;\">PLENTY of upside and they are $107,040 in the money &#8211; how crazy is that?<\/span><\/strong>\u00a0<\/li>\n<li>SQ &#8211; Could not be more on track.<\/li>\n<li>STLA &#8211; <strong><span style=\"color: #0000ff;\">Great for a new trade<\/span><\/strong>.\u00a0\u00a0<\/li>\n<li>TECK &#8211; Jan $50 calls going worthless for a $20,750 profit since August &#8211; nice! Now we are low in the channel but we have 10 uncovered calls so <strong><span style=\"color: #0000ff;\">we can sell 15 March $44 calls for $2.40 ($3,600)<\/span><\/strong>. Money is money&#8230;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/TECKd150258484i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>TGT &#8211; Stupidly cheap at $132, which is 14x. <strong><span style=\"color: #0000ff;\">We&#8217;re up $33,700 on the short 2026 $160 calls and I&#8217;m willing to take a chance and buy those back ($30,300)<\/span><\/strong> and we&#8217;ll see how earnings go.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/TGTd150436659i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>UNH &#8211; They&#8217;ve been in the news&#8230; Oversold here so <strong><span style=\"color: #0000ff;\">let&#8217;s roll our 15 2027 $500 calls ($156,638) to 25 2027 $450 calls at $128 ($320,000) and we can sell 15 April $520 calls for $26.50 ($39,750) and 10 April $500 puts for $18.50 ($18,500)<\/span><\/strong>.\u00a0 So we spent net $105,200 but we have 6 more cycles to sell $50,000 in premium ($300,000), which is a pretty good investment!\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/UNHd151022437i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>UPS &#8211; On track.<\/li>\n<li>VALE &#8211; A bit of a bounce but we&#8217;re miles behind. No changes though, we&#8217;re waiting on earnings.\u00a0<\/li>\n<li>VFC &#8211; Up and up they go! They blew past our target and now net $32,085 on the $45,000 spread so 50% more to gain if they hold $17.50 doesn&#8217;t make sense to touch.\u00a0\u00a0<\/li>\n<li>WBA &#8211; It moved! And we&#8217;re very aggressive but I see no reason to change it. Could be the beginning of a major squeeze since people were pricing them for death.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/WBAd151608737i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>WHR &#8211; Over our targets but who cares? This is how we have positions that LOOK like they are in trouble later but, in fact, it&#8217;s only because we cashed out. <strong><span style=\"color: #0000ff;\">Let&#8217;s sell our 2026 $80 calls ($201,400) and buy 50% more (30\/25) of the 2027 95\/120 spread ($56,125) and we&#8217;ll roll the 30 short March $110 calls ($62,400) to 40 short May $130 calls at $10.20 ($40,800)<\/span><\/strong> so that&#8217;s net $123,675 off the table and we started at net $65,740 so now we have a net $57,935 CREDIT balance on the $225,000 spread with short calls that are mostly premium and short puts we&#8217;re not worried about. Oh, and our spread is 110% in the money!\u00a0 \u00a0<strong>Aren&#8217;t options fun?\u00a0\u00a0<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/WHRd151860238i.png\" alt=\"Finviz Chart\" \/><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>YETI &#8211; Pulled back harshly but I still like them. Not much to take advantage of on the trade &#8211; we&#8217;re in good sahpe because this is where we came in.\u00a0\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/011725\/YETId153027834i.png\" alt=\"Finviz Chart\" \/><\/p>\n<p><strong>So there you go. It&#8217;s a well-diversified group of great value plays with a good $2M (60%) of upside potential to start 2025 off right.\u00a0 We also have $1M of hedges in the STP so all is well and I hope it remains that way as we go through Q4 earnings.<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S&amp;P 5,836!\u00a0 That is down 297 (4.8%) points from our Dec 17th Review and we since took a spill and a recovery and now a spill again &#8211; very exciting! Fortunately, our hedges are holding things together and, as I just so happened to say last month, at S&amp;P 6,133:\u00a0\u00a0 &#8220;We actually could have done [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":12770468,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21,26307,11],"tags":[],"class_list":{"0":"post-12770445","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-available","8":"category-premium-content","9":"category-portfolio-review"},"_links":{"self":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12770445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/comments?post=12770445"}],"version-history":[{"count":12,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12770445\/revisions"}],"predecessor-version":[{"id":12771944,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12770445\/revisions\/12771944"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/media\/12770468"}],"wp:attachment":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/media?parent=12770445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/categories?post=12770445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/tags?post=12770445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}