Today is all about scaling Howard's account.
Tom explains that Howard can do this by:
With Howard's current portfolio, he and Tom look to add exposure with some commodities (like gold), but also add to his existing positions and put more capital to use.
As Howard looks to get longer in MSFT, Tom notes that the Put Spreads are somewhat cheap. Therefore, they look to buy a Vertical Call Spread. By paying 1/2 the width of the strikes, Howard is "risking one to make one."
Moving on to Docusign (DOCU), Howard sells another Put option, despite the fact that earnings will be announced shortly.
Finally, with Crude Oil in play, Howard and Tom look to sell more premium in XOM with a straddle. This neutral strategy ties up some more capital (which Howard has plenty of), and the premium he collects is a bit higher than the expected move for the September monthly cycle.
Wrapping up the conversation, Tom explains how theta works as time goes on.
Tune in Friday for the next episode and a surprise from Tom!
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