Trade Update: URGENT Action Needed For CCI

The unknown instant cashflow hack that makes it impossible to lose.

If you didn't know, I started my career in the trading pits of Chicago.

It was the financial hub as more money changed hands daily than in any other place in the world.

I remember getting chills every morning as the opening bell rang and hearing the buzz and energy on the trading floor.

For the untrained ear, it sounded like chaos…

But for the trained ear, it was music.

Some of the busiest days on the floor were on the expiration day for options and future contracts.

Futures are another type of investment vehicle but are a contract to buy or sell a commodity or security at a predetermined price at a specified time in the future.

They are similar to options, but they are different investment vehicles.

The reason these days were so hectic is that there was so much money at stake.

The options and futures contracts that were about to expire were worth millions, sometimes billions, of dollars.

That means that a lot of firms would need to roll their positions further out in time.

So in other words, they were extending their position further.

This Friday is an important expiration cycle for us.

That's because we have 4 positions that will expire on the market close on Friday.

Now, 3 out of 4 positions will expire worthlessly.

Those positions look to be Mcdonald's (MCD), Iron Mountain (IRM), and Meta Platforms (META)

That's great news because that means we kept to the full amount of cash flow of each of those positions, which is around $616 for every contract sold.

Now, once those expire, we are going to establish new positions in those to keep collecting instant cash flow.

But we do have one position that hasn't gone in our favor as of yet. That's okay because we're going to roll it out to get more time for this to play out.

And we'll be able to collect more cashflow as we do too!

So you must do this before 3:45 pm Friday, November 18th.

Because if you don't you will be assigned shares of Crown Castle Inc (CCI).

This isn't a bad thing if you have the capital to own shares because it does pay a 4.60% dividend to shareholders.

But if you don't have the capital or want to make more instant cashflow then we must roll our position forward in time.

Here's how it's going to work if you have it open…

If you mirrored my moves, then originally, we sold the CCI on November 18, 2022, $145 put for $2.70 per contract.

Right now, that put is trading at $9.00, which means we are down $6.29 ($9.00 – $2.70 premium collected).

We are going to roll our position on January 20, 2023, $140 put for $9.20 per contract.

This is a great strategic move for two reasons:

1. We'll collect $0.20 extra while we extend our time for CCI to rebound.
2. We also adjust $5 lower, which provides more probability of success with shares trading at $136.

To make this adjustment, we are going to do this in two separate orders.

First, we're going to close out our current position. Here’s a screencast of me entering the transaction in my brokerage account:

Here are the instructions written out…

Action-to-Take: Buy-to-Close Crown Castle Inc. (CCI) November 18, 2022, $145 put.

Here’s what I do while in a brokerage account if you’re not just copying and pasting the cashflow code. (Remember, depending on what brokerage platform you’re using, it might look different than my video. But these instructions should help.)

Step 1: I type in the ticker symbol CCI.

Step 2: I open the options chain for the November 18, 2022 expiration cycle.

Step 3: I locate the $145 “PUT” strike, which is located in the November 18, 2022 expiration cycle

Step 4: I double-checked the ticker symbol, expiration, strike, and options contract type: CCI221118P00145000

Step 5: I click on the “OFFER” price to open the order entry menu. (The offer price will be higher price than the bid price) The order entry MUST say “BUY” & “SINGLE”

Step 6: I select how many contracts to Buy-to-Close or BTO (If you have one contract that was sold, then it's going to be one. If it's 3, then it's going to be 3. If not, then you will not close out this position completely.)

Step 7: I enter my price at $9.00.

Step 8: Click “Confirm & send” to review the order. This is where I double-check again to make sure it's correct.

Step 9: Then I press “send”

Step 10: Confirm it's been filled. In ThinkorSwim, the red (POS) tag will be gone.

Next, we are going to roll this CCI position into January 20, 2023, $140 put.

Action-to-Take: Sell-to-Open Crown Castle Inc. (CCI) January 20, 2023, $140 put.

Here’s what I do while in a brokerage account if you’re not just copying and pasting the cashflow code. (Remember, depending on what brokerage platform you’re using, it might look different than my video. But these instructions should help.)

Step 1: I type in the ticker symbol CCI.

Step 2: I open the options chain for the January 20, 2023 expiration cycle.

Step 3: I locate the $140 “PUT” strike, which is located in the January 20, 2023 expiration cycle

Step 4: I double-checked the ticker symbol, expiration, strike, and options contract type or what I call the “cash flow code”: CCI230120P00140000

Step 5: I click on the “BID” price to open the order entry menu. (The bid price will be the lower price than ask price) The order entry MUST say “SELL” & “SINGLE”

Step 6: I select how many contracts to sell-to-open (remember from the quick-start series, this strategy is to “selling-to-open” or “STO… not buying.)

Step 7: I enter my price at $9.20, since prices are trading at $8.80 and $9.30… $9.20 is middle of the market and will likely get filled at that price. So that’s why I chose that.

Step 8: Click “confirm & send” to review the order. This is where I double check again to make sure that it matches the exact cashflow code, quantity, buying power effect and that I’m selling-to-open.

Step 9: Then I press “send”

Step 10: If the order isn't filled at that price, cancel and replace at a lower price of $9.00. You'll now order is filled when the red (POS) tag is next to strike.

Originally, the margin needed for this contract was $1,550 in buying power for every put contract.

Because prices have gone lower, the margin needed is higher, and now $2,727.

For cash-secured, the broker held $14,230 for a cash-secured account for every put sold.

Now, the broker will hold $13,080 for a cash-secured account for every put sold.

Take action on this one…

Write down your questions as you go.

And then submit them on this page in the question box. I’ll answer them in an upcoming Q&A podcast. Those podcasts are sent to you each week, and I’ll do my best to get to everyone’s specific questions.

Josh Belanger
Editor, Weekly Cashflow Triggers