6/27/2021 Plan:
This week we look at a Disney (Ticker: DIS) trade
6/27/2021 Plan (continued):
- DIS – Sell the Jul 16th 170/167.5 put spread for 0.25
- INTC – Sell the Jul 16th 53.5/51.5 put spread for 0.20
- SBUX – Sell Jul 16th 110/107 put spread for 0.42 (Bonus riskier trade idea)
- ABBV- Sell the Jul 23 109 put for 1.32 (Only if you want shares!)
- Prices are as of market close 6/25/2021, 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
6/27/2021 Commentary:
With Implied volatility still quite high in Disney, we look to sell a put spread and pick up a bit of premium. I like Disney long term and would be ok picking up some shares between 170 and 167.5 if it ends there.
If you Don’t have a trade on in Intel (members may still have a put spread that expires this week), selling the 53.5/51.5 for 0.20 is an ok play.
For a riskier trade, consider the July 16th 110/107 put spread in SBUX for 0.42. This is closer to the money and has a lower probability of winning – not going to count this as a trade (win or lose), but I am personally taking it and will track it here for educational purposes.
Note that we will have a Lot of trades expiring on July 16th. Be mindful of your market exposure and that a big downturn that week could impact all of our open positions. Feel free to close some of the currently winning trades or pass on some of these to balance your account.
And for the put sellers out there, I like the ABBV July 23rd 109 put for 1.32. You would need to be willing to take shares (and have $10900 to do so) to place this trade. You could also spread it by buying a lower strike.
Feel free to Reach out with questions on this or anything else!
6/28/2021 Entry:
Sold DIS Jul 16 167.5/165 put spread for 0.25. No INTC trade available (underlying rose) Sold ABBV Jul 23 109 put for 1.06. Sold SBUX Jul 16 109/106 put spreads for 0.44.
7/5/2021 Update:
The put spreads in Disney are down to 0.11 – we’ve brought in more than half the profit in the first week. This still has 2 weeks left and I plan to leave the trade alone. No harm in booking a win if you need the capital.
The ABBV put is 0.70 at the mid point, which provides with a nice profit after a week. I’m leaving this one on for now.
The SBUX put spreads performed Very well and are only worth 0.06. I’d probably close some/all of these this week to book a quick (big) win.
7/11/2021 Update:
The put spreads in DIS are worth 0.06 and expire this week, we have a nice profit on these and can close at any time.
The ABBV put sale is looking great and can be closed for 0.25 at the mid point if you want to capture profits and/or free up some margin. I’m leaving mine on, personally.
As mentioned during last week’s update with the SBUX put spreads performing so well, I simply took them off for only 0.02. This was a win of $42/spread.
7/17/2021 Update/Close:
The ABBV put expires this week and is worth less than 0.11. You can take this off to capture the win at your leisure this week. I’ll likely leave it on until expiration.
The DIS put spreads expired worthless after a pretty volatile week for the stock bringing in another $25 of profit per spread.
7/25/2021 Close:
The ABBV put expired worthless this week and we made $106 per put sold. If you spread this trade, you made a bit less but also required much less margin.
