2/09/2020 Plan: User’s choice of airlines – United (UAL) or Delta (DAL). Or both!
- We sell the 28 FEB UAL 74/72 put spread for 0.25 or sell the 28 FEB DAL 55/53 put spread for 0.31
- Intent is to hold until expiration or remove for a few cents on a strong move up.
- Prices are as of market close 2/7/2020, 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
2/10/2020 Entry: Sold 28 Feb UAL 74/72 put spread for 0.25, 2 times
2/10/2020 Entry: Sold 28 Feb DAL 55/53 put spread for 0.32, 2 times
2/28/2020 Exit: Regardless of which put spread you selected, you almost certainly lost the full amount if held through today. The spreads could have been taken off early for a win, but the steep drop starting on the 21st followed through all week. This is why we limit our downside with spreads and use a smaller position size. Many traders and investors do not follow this and experienced quite a bit of pain last week.
Results – $168 loss per DAL spreads or $175 per UAL spread
