2/02/2020 Plan: AMC Networks – AMCX – Sell 21 FEB AMCX 35/30 put spread for 0.45 credit
- We sell the 21 FEB AMCX 35/30 for 0.45. Intent is to take it off if the market quickly recovers for at least 0.25. Good support at the 35 level and if one likes the name, could turn it into a wheel, although the monthly expirations limit write opportunities.
- Prices are as of market close 1/31/2020, actual fill and strikes may differ depending on Monday open , post will be updated accordingly
- All trades are for educational purposes and do not constitute advice
2/03/2020 Entry: Sold the 21 FEB AMCX 35/30 for a 0.53 credit, 0.08 more than expected. Which is nice.
2/14/2020 Update: Position can be closed at an time, buying back the short leg for 0.10, profiting 0.43 per spread.
2/21/2020 Exit: The position expired worthless, capturing the entire profit.
Results: we made $53 on a risk of $447 for an 11.9% return in 18 calendar days or about 240% annualized. Note that the market dropped quite a bit the last few days of the week and while this expired out of the money, it was close. For this reason, we posted the opportunity to take it off the week prior while retaining 80%+ of the profit. If we wait until the end, we need to be comfortable turning a winner into a loser or in taking delivery of the stock and selling calls against it.
