2/16/2020 Plan: Put spread in Boeing. [Backup plan is 6 March CCL 39/37.5 for 0.22]
- We sell the 6 MAR BA 317.5/312.5 put spread for 0.50. A more aggressive entry could be the 320/315 for 0.62. Smaller percentage return targeted on this trade, although 10-12% in a few weeks is well within our goals.
- Intent is to hold until expiration or remove for ~0.10 on a strong move up.
- Prices are as of market close 2/14/2020, actual fill and strikes may differ depending on Tuesday open (holiday on 2/17), post will be updated accordingly
- All trades are for educational purposes and do not constitute advice
2/18/2020 Entry: Sold 6 MAR BA 317.5/312.5 for 0.53. $0.03 more than expected.
2/28/2020 Update: This trade will very likely end up as a full loss. This will happen from time to time, particularly when the market drops 11.5% in a week! Maintain small position size and don’t “revenge trade”.
3/6/2020 Exit: With BA ending the week at 262.33, this trade went out for the full loss of $447. A reality of trading is that not Every trade will be a winner. It is important to recognize this fact and not chase losers (doubling down, adding to losers, increasing trade size recklessly, etc.). This is also why most silver trades are done risk-defined as selling the 317.5 put naked would have resulted in a loss of $5,517!
