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From Theory to Practice

Managing Winners in CSCO & AMZN

| Aug 14, 2025
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    From Theory to Practice

    Managing Winners in CSCO & AMZN

    Aug 14, 2025
    In today's From Theory to Practice, despite a significant drop when PPI numbers were released, markets quickly recovered, demonstrating remarkable resilience. The S&P futures ended just slightly down, while NASDAQ futures turned green, highlighting the market's ability to absorb economic data without meaningful pullbacks. Dr. Jim Schultz reviewed several portfolio positions, closing out both winning and losing trades. His Amazon short put delivered over 50% max profit, while his Cisco strangle also provided a win following earnings. Conversely, his gold trade and Cava butterfly failed to perform, with Dr. Jim accepting the latter as a directional play that simply went the wrong way. For Starbucks, he demonstrated an investment-style covered call approach by selling the 100 strike call, providing additional premium income while maintaining upside potential on his long-term stock position.

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