The profits from the recovery are starting to come in. Here is the plan:
- Citigroup is rising nicely. Once it gets to par, sell the LEAP 5 Call options for a profit. Next step: accumulate some 7.5 or 10 LEAP Calls, preferably on a correction.
- Amazon had a huge dip at the beginning of this week [see image to the left] that seemed unjustified, except that it was in the context of a drastic overall market sell-off. It's recovered during the rest of the week, but in the meantime, by jumping in on Monday morning there was a tidy profit in selling ATM Puts with only a few days left; those puts expire tomorrow.
- Also, if AMZN hits 90, buy some very OTM puts at 60 in order to conserve capital on longer-term 80 short puts.
- Finally, accumulate some LEAP Calls for one or two leading homebuilders, e.g. LEN and PHM. This has been a massive downturn for homebuilders; as the market recovers, well-managed companies should see significant upside.
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