Let’s roll the EEM short call to avoid any potential early assignments for the dividend. This will also give us the opportunity to roll the call back up reducing margin.
We are paying a debit for this roll but remember this is a long-term trade. We still have 2 years left on the LEAPs. Our debit on this trade has been reduced to 4.18 from and entry point of 9.24 or over a 50% reduction in cost.
We will roll the put a little later in the week, there is still about 0.75 in time value left in the put.
For subscribers that were not in this trade, this would be a good point to enter. The original trade is the 20 Dec 24 39 strike call and put straddle and we are then selling calls and puts against it. However, you will have to track your cost basis as it will be different from the master account.
iShares Emerging Markets ETF (EEM): 38.72
TRADE ACTION 1: ROLL the EEM 16 Dec 35 call to the EEM 6 Jan (23) 39 call for a net debit of 3.15 – 3.25
BTC the 16 Dec 35 call
STO the 6 Jan 39 call
The Master Portfolio is trading 5 contracts.