8/2/2020 Plan: This week, your choice of bullish plays in two of the major banks – JP Morgan (Ticker: JPM) and Citibank (Ticker: C)
8/2/2020 Plan (continued):
- JPM – Sell 1 of the 28 August 90/86 put spreads for 0.60
- C – Sell 4 September 45 put for 0.69 or spread the 45/40 for 0.49.
- Prices are as of market close 7/31/2020, 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
- As always, reach out with any questions!
8/2/2020 Commentary:
Volatility in the market has continued to decrease, yet with both JPM and C we have implied volatility remaining above realized volatility. With earnings and dividend payments behind us, both of these trades are straightforward bullish plays. For C, only place the trade if you are willing to take shares at an equivalent of 44.31. Alternatively, you could do the spread of 45/40 for 0.49.
Reach out with any questions on this or any other trade!
8/3/2020 Entry:
Market is up again to start the week, reducing the available premium in our trades.
C 4 Sept 45 put sold for 0.56. Less than plan, still a good sale.
JPM 4 Sept 90/85 put spread for 0.72. 1 week later, 1 strike wider. The original 28 Aug 90/86 for 0.49 is also ok.
Note that if you had access to the market earlier you could have filled better than the above. Reach out with any questions!
8/9/2020 Update:
Our put in Citibank is down to about 0.29, a nice move for the first week (0.27 profit). The 90/85 put spreads are starting off well in JPM and the 0.49 JPM put spreads are down to 0.41, profitable by 0.08 for the first week. No change for either position going into the next week.
8/16/2020 Update:
Our Citibank put is down to about 0.21, with C ending the week a little below 53. No change at this time to this position. If you need additional capital, you can close it or you can spread it buy buying a 40 put. In general, I would just close it if I need to free up funds.
Our JPM put spread is only worth 0.19. This is really a nice win already, pulling in 0.53 of profit and can be closed now or left to slowly decay. As this still has a few weeks left, it would be a candidate to remove if you need to for risk management or buying power. I’ll be leaving it on for now.
8/23/2020 Update:
Banks sold off this week and C ended at 49.30. The put value is essentially unchanged. No change at this point. Similarly, JPM sold off and the spread is worth about the same (0.22 vs 0.19 last week). Again, no change to the position at this point, but we may look to take it off towards the end of the week if there is a rally or some decent decay.
8/28/2020 Close:
We close the C put for 0.04 and the JPM put spread for 0.04. With one week remaining, will take the wins and re-allocate capital in new trades. We made $52 for each C put and $68 for each JPM put spread, great results!
