2/23/2020 Plan: Put spread in Axon Enterprise. If one wants to get long the stock, go with the 75/70 otherwise the 70/65. Warning – this trade includes earnings and is a more volatile play. I am long AAXN and looking to add shares. A less volatile play for the week would be the 13 March CCL 39/37.5 for 0.20.
- We sell the 20 MAR AAXN 75/70 for 0.95 or the 70/65 for 0.50
- Intent is to hold until expiration or remove for 0.20 (75/70) or ~0.10 on a strong move up.
- Prices are as of market close 2/21/2020, 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
2/24/2020 “Entry”: With the market plummeting, it is not recommended to sell new put spreads until the market bottoms a bit. An exception would be if one is Really (Really) OK with owning the stock for a long time as the market could continue to go down for a while. If so, one could get the 70/65 put spread for 0.72 on Monday. A common phrase in the markets and these types of trades is “trying to catch a falling knife”. Don’t put it on unless you can live with losing 4.28 or are OK holding the stock until it recovers.
