Hello investors! I made some moves in my portfolio today, and as always, I share them as close to real-time as possible. From the screenshot below, you can see I first took a very quick position in a MU 0.00%↑ portfolio-secured put for the same day expiration.
This was a judgement play based on pre-market activity and just an opportunistic move with regards to the AI slowdown news. I exited quickly and took the profits to invest $500 into GPIQ 0.00%↑. I bought another 10 shares to bring that closer to par with my other ETFs.
The main move I did after that was to sell a covered call on AMR 0.00%↑. I meant to do this last week; unfortunately, I was busy and could not get around to placing the trade. As you can see in the AMR 0.00%↑ chart below, the MACD and the RSI crossed over and are showing a break of the strong move that led to local highs in recent days and weeks.
In addition, higher met coal prices are putting pressure on steel margins and could limit steel production which impacts met coal prices. The market seems to have noticed that a few days ago and US coal equities have reversed. This is why I wanted to make this play last week, but I determined that in the absence of other met coal price catalysts, I could still sell a covered call.
I’m prepared for either outcome. If met coal prices rally for some unknown reason and I get assigned, I still have ~90 shares of AMR 0.00%↑ and 496 shares of HCC 0.00%↑ providing ample exposure to my coal trades. I can also roll the option out if I want to keep those shares.
I will use the option premium and the money from assignment to add to GPIQ 0.00%↑ or perhaps to a new stock for the portfolio.
If AMR 0.00%↑ continues the downward trend, I will keep my shares and keep the premium. I received ~$1000 for this strategy and I will use it to grow my GPIQ 0.00%↑position as discussed.
That’s all for today fellow investors!
As always, my content is not financial advice and you should do your own due diligence before investing your money.