4/12/2020 Plan: Two trade options this week, one for longer term DIS bulls and another more risky play for those traders looking for a quick potential win.
4/12/2020 Plan (continued):
- DIS Bulls – sell the 1 May 80 put for 0.64 at the midpoint. This is a 0.8% return for a less than 3 week hold. We take the shares if assigned.
- Shorter term traders – sell the 45/42.5 TAL put spread for 0.20 credit 2x. A more aggressive positioning would be the 47.5/45 put spread for 0.50.
- Prices are as of market close 4/10/2020, 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
4/13/2020 Entry:
- DIS 1 May 81 put entered for 0.81. If held to expiration and it goes out worthless, this will be 1% in less than 3 weeks. We were able to get more of a credit as the market was down for a slight increase in strike (80 to 81).
- TAL – unable to fill on Monday
4/14/2020 Update:
- Market was up on Tuesday, and those that filled the TAL trade should take it off for a minimal amount (0.10 on the 47.5/45 and 0.05 on the 45/42.5)
- DIS is also up solidly and a quick $35 profit per contract can be taken if desired.
4/24/2020 Exit:
- Closed DIS 81 put for 0.06. One could hold it for another week to squeeze out the last 0.06, but the reality is that you are often better closing a position with limited premium remaining and redeploying the capital. Your returns will be higher and you remove the risk. 0.75 earned in under 2 weeks.
