3/28/2021 Plan:
A few trade ideas this week, including a higher risk/reward put spread in Beyond Meat (Ticker: BYND) and AXON:
3/28/2021 Plan (continued):
- AXON – Sell Apr 16 125/120 put spread for 0.90 (higher risk) or
- AXON – Sell Apr 16 120/115 put spread for 0.40 (lower risk, lower reward)
- BYND – Sell Apr 16 115/110 put spread for 0.63
- CRM – Sell Apr 16 195/190 put spread for 0.51
- JWN – Sell Apr 23 put for 0.30+ (unlikely execution)
- Prices are as of market close 3/26/2021, actual fill and strikes may differ depending on Monday’s open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
3/28/2021 Commentary:
Reminder – the markets are closed on Friday and positions expire on Thursday. Plan accordingly
We have ideas for put spreads in 3 different names this week. It is possible that some won’t be available depending on how the market opens up. As they all expire on April 16th, consider selecting a subset of the positions or reducing your position size to avoid taking on too much risk in one expiry.
AXON makes equipment for the military, law enforcement and private citizens. They are the makers of tasers. They have been trending down since later January and this trade assumes that will stop (or at least slow down) . I’d lean towards the 120/115 personally and would like to get at least 0.45 for it. May be tough to fill. If you would consider going long 100 shares, then the 125/120 offers a nice premium.
We carry over the BYND trade although at better levels after the sell off last week.
With the recent winner in CRM for our members, we look to re-enter. Similarly for JWN, we’ll try again at the 30 strike. The bid/ask is pretty wide, so use limit orders and don’t chase this one.
We’ve had some really interesting market moves recently, including a Huge run up into the close on Friday. Keep an eye on your overall risk and don’t get over leveraged.
Reach out with any questions on this or any other trade!
3/29/2021 Entry:
Sold the JWN Apr 23 30 put for 0.32. Sold the CRM Apr 16 195/190 put spread for 0.47
BYND put spreads, risky, are available for higher prices. I’m passing.
AXON 120/115 put spreads are available for 0.65+, but the stock has had a big move down so be cautious.
4/4/2021 Update:
The JWM put is roughly unchanged and we’ll leave it on for another week as we’re still almost $7 out of the money..
The CRM put spreads are performing well and can be closed for 0.05 at the midpoint – I expect it will cost a few pennies more, but feel free to take it off and book the profit at any time. With the big 3% move up on Friday, these are pretty comfortably OTM.
The AXON put spreads are starting to perform well, with a nice move up in the latter portion of the week. The spreads are wide, so as always, use a limit order if you want to close this winner.
4/10/2021 Update:
The JWN put is quite far OTM and no action is planned for this week. It is likely we’ll capture all of the premium. As it is still two weeks from expiration, if you need to free up margin, go ahead and close this to book the win. Make sure you use limit orders and start by trying to buy it for a couple pennies and slowly increase from there.
The CRM put spreads are in Great shape, worth about 0.04. They expire this week, so close whenever you’d like.
The AXON put spreads also expire this week. They are quite far OTM. The short puts are 0/0.15 bid/ask. You can probably close them for 0.05 without too much trouble. You can also let it go to expiration – just be sure to close if AXON takes a turn down and is Anywhere near the short strike.
4/18/2021 Update/Partial Close:
Same as last week, the JWN puts remain far out of the money and likely to hit our full profit when they expire this week. You can close at any time and remove the (small) risk and free up margin
Neither the CRM nor the AXON put spreads were in danger this week and they expired worthless, allowing us to capture all of the premium. Two additional wins that help to increase our account balances.
4/25/2021 Close:
The JWN puts, never really in danger, expired worthless, brining in an extra $31 to our accounts.
Reach out with any questions on this or any other trade!
