Our hedged synthetic covered call has been profitable for several days now. Our long options are in the money and expire next week. Time to re-set our position. Today, we will close it for a 22% to 24% profit and re-open a new one in the live trading session tomorrow pending market action in the morning.
TRADE CLOSE: Hedged Synthetic Covered Call
SPDR S&P Biotech ETF (XBI): 81.50
TRADE ACTION 1: CLOSE the XBI 18 Nov 77 / 82 put for a net debit of around 1.67 to 1.72
BTC the XBI 18 Nov 82 put
STC the XBI 18 Nov 77 put
TRADE ACTION 2: CLOSE the XBI 18 Nov 81 call and the XBI 11 Nov 81 call for a net credit of around 1.00 to 1.02
STC the XBI 18 Nov 81 call
BTC the XBI 11 Nov 81 call
The Master Portfolio is trading 5 contracts.