9/27/2020 Plan: We look to sell a put in MetLife (Ticker: MET). Plus a bonus trade in INTC
9/27/2020 Plan (continued):
- MET – Sell 1 of the 23 October 32 puts for 0.38. Likely to get a lower fill here. A 33/31 spread for 0.25+ is another play for those preferring an outright trade.
- INTC – Sell 2 of the 16 October 47.5/45 put spreads for 0.29
- Prices are as of market close 9/25/2020, actual fill and strikes may differ depending on Monday’s open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
9/27/2020 Commentary:
MET has come down quote a bit along with the rest of the financial sector in the last couple of weeks. We take this opportunity to sell a put at a much lower level not seen since May. The straddle that week is close to $3 and we will sell up to the 33 strike if needed. This trade is about 4 weeks away and we can even take a bit less premium.
As an additional trade idea, consider re-entering INTC (which closed for a great profit at the end of last week). The October 16th 47.5/45 put spread can be done for 0.29 two times. Please note that earnings are the following week and we’ll avoid trades that expire that week. If this spread expires worthless, we’d make over 13% on our risk in just a few weeks.
Reach out with any questions on this or any other trade!
9/28/2020 Entry:
We sell the 30 Oct 33 put for 0.40 in MET. MET is up over $1 today and we go a week out and a strike up. Still outside the expected move.
INTC has moved up as well this morning and the trade isn’t currently available. We will monitor throughout the week.
10/4/2020 Update:
With quite a bit of movement this week, one could fill these puts better than the alert of 0.40. Personally, I filled puts at an average of 0.415. The alert was at 0.40 and we’ll track against that.
At the end of the week the puts can be closed for about 0.27, which would be a quick profit of $13/put sold. Our strike remains outside of the expected move for the Oct 30 expiration and we’ll simply hold for this week.
10/11/2020 Update:
MET and the rest of the market had a pretty decent rally this past week, reducing our puts to only 0.08 at the midpoint. The spread is a bit wide (0.03/0.13). Given there are still 3 weeks for this trade left, this is a good candidate to close for an early win if one wants to free up capital or simply reduce risk.
10/18/2020 Update:
With MET over $39, our put is nearly worthless, with the bid/ask at 0.02/0.09, one can close for about 0.06. With the fill at $40, this is $34 of profit if you close now. This trade is a great candidate to close and free up some capital for additional trades.
10/25/2020 Update:
MET has increased to almost $40 and our 33 puts are comfortably out of the money. They are 0/0.15 bid/ask and can probably be taken off for just a few cents at any point this week before expiration. Pending a drastic event this week, this will be another nice win.
10/31/2020 Close:
The MET put expired worthless, for another win of $40 for our members. A pretty straightforward trade, but certainly if there are any questions, please Reach out!
