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Last week the algo resulted in a few alerts, mainly VZ 39.5 which doubled during the week but I took about 60% on it, and then BRK/B 495 and NFLX 84 for 1/30 where BRK/B was a 100% loser, but NFLX more than compensates for it, with a week remaining.
Here are the trades:
https://preview.redd.it/8m9tyk33icfg1.png?width=750&format=png&auto=webp&s=7a43acbaa840d3d92b03d4583f309b65e67e0b77
https://preview.redd.it/q0z7jpwyhcfg1.png?width=747&format=png&auto=webp&s=d2f3b568e88cbba0fe1ded795f1fafef1905f535
I use my own model to arrive at "cheapness" versus the dominant BSM model which is used in the industry. The "rank" is my own high level grouping of the mispricing.
People have asked me how I trade these, and here are some of my own guidelines:
1. Trade small, and if you want to trade even smaller, then buy a vertical call spread.
2. Never double down - if the trade does not work, close it or roll it, and do not throw good money after bad
3. If the stock drops before you enter the trade, move down a strike, or do not trade the option at all
4. Treat them as a diversified basket but take quick profits at your profit target, as we all have different risk/return profiles and appetites
The data is as of midday on Friday so some of them have already moved in either direction. I do not have positions in any of these calls, so stay tuned for an update. Do your own research and formulate your own trades.
**Date, Symbol $Strike, Exp Date, Bid/Ask, Rank: Value Price**
01/23/2026, WMT $118, 01/30/2026, 1.6/1.66, Rank: 1
01/23/2026, ROST $187.5, 01/30/2026, 1.85/2.4, Rank: 1
01/23/2026, SCHW $102, 01/30/2026, 1.22/1.38, Rank: 1
01/23/2026, WFC $87, 01/30/2026, 0.92/1, Rank: 1
Good luck, cheers!