MEP Portfolio Alert 10/27/26

Sell ALB Dec115C @$3.10

Well, we said we were looking for a technical rally and we sure got one today. I know, after waiting this long in a bad Lithium tape, I might've wanted to wait another day to see what the squeeze would deliver – but I decided not to.

Selling calls at $3.10 for a 115 strike will give us pretty much a wash on this trade if the Nov 4 report comes back good. Don't get me wrong, we'll have lots of time to adjust the option position before this one expires, and if the report is good, I'll expect to. But locking in another 3% in two months on this position - by far the worst in the portfolio - is quite compelling.

We'll protect on the position that's working the worst, while letting the ones that are working continue to work untouched.

PS - Not worried on Constellation, BTW. It's gotten caught up in the AI mania of capital chase and sales reports. Meanwhile, the nuke contracts they're signing for the hyperscalers are exactly as we'd want them for the terms we'd want. That move we got two weeks ago back to $300 is, in my view, the right one. The move back down to $260 is the AI skittishness.

dan@dandicker.com