5/10/2020 Plan: We had a nice result with a recent WBA trade and this week we put on a very similar one:
5/10/2020 Plan (continued):
- WBA- 22 May – Sell 39/37 put spread for a credit close to 0.30, two times. For a bit more risk, there is the 39.5/37 put spread for 0.42.
- Note, the 39/37 credit of 0.30 is approximate. At the midpoint, it currently shows 0.46 due to a wide spread on the 39 strike.
- Prices are as of market close 5/1/2020, actual fill and strikes may differ depending on Monday open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
- As always, reach out with any questions!
5/13/2020 – Entry:
- WBA 22 May – Sell 37/35 put spread for 0.30 two times. Market down today and we get a fill at lower strikes than planned
5/22/2020 – Exit:
- WBA finished the week at 39.6 and the spread ended well OTM allowing us to take in the full credit. One could certainly have taken it off at any time this week to capture most of the profit and free up capital/reduce risk. $30 per spread, for $60 total. $170 risk per spread, so a return of almost 18% on risk.
