Pre Market MAR 31, 2025

Stocks are red in the Pre Market today, some are very red
One that is down, but not as much as the others, is COST

I’m not showing favoritism to it because its an old friend of ours, I’m not
On my screen this morning COST is down the least of all of the stocks that we look at, all of them… Combine that with the fact that it’s a high dollar stock that moves, the Strangles I mentioned last night look to be a play here

This is going to be different, this strategy is applicable to other stocks right now too, but COST fits “the profile” the best here…. The current stock price falls close to the center of our 2 strikes, that is what we are looking for here

APR 17, 2025
Custom Made Strangles
Buy the 925 Call
Sell the 920 Put
The MID price cost is 9.68
That is cheaper than I would of thought
Should COST go up, we then go ITM on the long
1st: An investor could keep the short 920 for downside protection
2nd: An investor could “roll” the short strike up to the next strike
3rd: An investor could drop the short strike and ride the long

Should the stock price of COST fall
The investor could do everything mentioned above simply in reverse form
So the investor would then keep the short strike but adjust the long, again that is if the price fell down

With Options we have options, no pun intended
Investors that only use Puts and Calls and nothing else can get left behind in times like this

Our normal rule of “We never buy when a stock is red or down”” doesn’t apply here
We are basing our buy around movement, for either direction
The others are still in place

We always buy at the Mid price or better
We set STOPS and HONOR them
We don’t chase stocks

Today is the last day of the month
Today is also the last day of the quarter
Today is “Liberation Day” in reference to the tariffs
Today could see some wild, weird and wonkee price action

Protect capital, capital preservation beats wealth generation

S+P 500 is at 5,570
Time to grind
And maybe time to get all of you over here to help me build some giant wind mills 😁 

The Options Coach