6/5/2022 Plan:
This week we take a look at Dupont Ticker: DD)
6/5/2022 Plan (continued):
- DD – Sell the Jul 8 61/58 put spread for 0.35
- Prices are as of market close 6/3/2022, 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
6/5/2022 Commentary:
Dupont bounced off 62 a couple times recently and this trade assumes we don’t drop below it over the next several weeks. With no earnings during this timeframe, this is a somewhat ‘standard’ trade. IV is currently above HV and we’re getting a nice premium on this narrow spread.
Feel free to Reach out with questions on this or anything else!
6/6/2022 Entry:
Sold DD Jul 8 62/58 put spreads for 0.42. 61/58 available for almost 30, Note I raised the short strike.
6/11/2022 Update:
The sell off towards the end of the week hurt these put spreads (and many other positions). Holding as we still have plenty of time and they are still out of the money.
6/17/2022 Update:
Big sell off and we are underwater on these DD put spreads. Cut your losses if you sized too high, otherwise hold for a potential recovery.
6/26/2022 Update:
DD had a big rally on Friday and we’ll need more of that over the next two weeks. One can take a smaller loss now and get out or hold for the potential of a recovery. I’m doing the latter.
7/10/2022 Close:
Took the full loss on this one for a $358 per 62/58 spread for $270 for the 61/58 spread. Not fun, but these losses are part of trading.
