2/21/2022 Plan:
This week we look at JP Morgan Chase (Ticker: JPM)
2/21/2022 Plan (continued):
- JPM – Sell Mar 18 140 put for 1.45 (larger accounts) OR
- JPM – Sell Mar 25 140/135 put spread for 0.67
- U – Sell Mar 75/70 put spread for 0.46
- DOW – Sell Mar 11 55 put for 0.46 – If you want shares
- Prices are as of market close 2/18/2022, 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
2/21/2022 Commentary:
JPM has been a pretty reasonable premium sale and this trade assumes that we maintain the $140 level in the name. I would be happy to add shares and will look to sell the put cash secured. As a trade, going one more week offers a nice risk/reward with the understanding that the probability of JPM breaching the 140 strike at some point between now and the 25th is higher than the 18th.
U is a Far out of the money put spread. Higher risk name, but requires a roughly 25% sell off to lose at expiration.
I have been “wheeling” DOW for years and like the 55 level to add more shares. This trade allows us to do so in just a few weeks at a decent premium.
Feel free to Reach out with questions on this or anything else!
2/22/2022 Entry:
Sold DOW Mar 11 55 put for 0.46, JPM Mar 18 140 put for 1.36, sold U 75/70 Mar 18 put spread for 0.48.
2/27/2022 Update:
We are profitable on the DOW put. With 2 weeks to go and over $4 between the current price and our short strike, I like holding the position with no action this week.
We are down some on the JPM put. Still plenty of time on this one and I don’t plan to take any action this week. We are almost $8 from the short strike.
The U put spreads are doing very well and we are nearly $30 from the short strike. I like holding these longer to try and collect more premium. One could close for an almost $30 win per put spread this week if they need to reallocate capital or reduce portfolio risk.
3/6/2022 Update:
The DOW puts expire this week and can be closed at any time for a win. I’ll let them go to Friday to try and maximize the win. I’m ok taking shares if there is an unexpected sell-off.
Bank stocks have been hit hard with the Russia/Ukraine conflict and our JPM puts are ITM. With 2 weeks left, we’ll hold, but it is likely we’ll be new owners of 100 shares of JPM.
Two weeks left on U and we are still quite a bit out of the money, but the volatility in the markets have us down on the position. I will be holding – no need to close now with $13 of room before our short strike.
3/13/2022 Update/Partial Close:
The DOW puts expired worthless, adding $46 in profit to our accounts. Much like AMD, I still like adding shares to DOW at lower levels – this has been a pretty reliable put-write.
We will own 100 shares of JPM at the end of the week (if we don’t roll). I’m good with this for a longer term holding and selling calls against it.
The U put spreads expire this week, ideally well out of the money allowing us to profit nicely. This continues to be a volatile name, so if you see a good opportunity to get out this week, go ahead and do so. I intend to hold until later in the week.
3/21/2022 Close:
Wow. I was pretty confident we’d own 100 shares of JPM. We don’t! The put expired worthless adding $136 of profit to our accounts per put sold. I was wrong, but happy to be wrong in this case… For larger accounts, I’ll be looking to sell another put in JPM.
The U put spreads also expired worthless adding another $48 of profit for each put spread sold.
