1/24/2021 Plan:
This week we look at a few ideas, including a put spread in Salesforce.com (Ticker: CRM):
1/24/2021 Plan (continued):
- CRM- Sell February 12th 210/205 put spread for 0.75 OR
- CRM- Sell February 12th 207.5/202.5 put spread for 0.50
- DKNG – Sell February 19th 45/40 put spread for 0.69 – Speculative
- JWN – Feb 19 30 put for 0.39 (can spread with 27 or 28)
- Prices are as of market close 1/22/2021, 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
1/24/2021 Commentary:
Salesforce.com has bounced back from a recent dip and we place this put spread below the recent low. One can sell the 207.5/202.5 to increase the probability of it expiring worthless for 1/3 less premium. The IV remains high in this name and earnings aren’t until later in February.
We look at DKNG again for a speculative trade, taking in a nice premium for a spread that is more than $7 OTM. This name can move, though, so size accordingly. These trades provide a nice premium but will add more volatility to your account.
JWN seems to have established itself well above the 30 handle and this short put takes advantage of the higher IV. Spread the name if you aren’t willing to hold the shares or be ready to take it off if the name turns lower quickly.
Reach out with any questions on this or any other trade!
1/25/2021 Entry:
We sold the CRM Feb 12 207.5/202.5 put spreads for 0.62. Passed on the JWN puts and the DKNG put spreads for the time being
1/31/2021 Update (and late 1/29 Entry):
With the market selling off on Friday, I sold the DKNG 45/40 Feb 19 put spreads for 0.66. This was an optional trade and depending on how the market opens on Monday, one can follow along if interested.
The CRM put spreads are still worth about 0.60 with market vol quite high. Our short strike is about $17 OTM and no change is planned this week, we’ll let time do its job.
2/7/2021 Update:
The DKNG Put spreads are now worth only a couple cents as DKNG really took off last week. Close when you want this week or squeeze the last 0.02 and wait a couple weeks.
The CRM put spreads expire this week and are essentially worthless as they are quite far out of the money. Feel free to close the at any time this week or let them (likely) expire worthless taking on a bit of risk of a Very big move down.
2/14/2021 Update, Partial Close:
The CRM Puts expired worthless, allowing us to pocket $62 per spread sold. A nice solid win for our members!
The DKNG Put spreads are about $15 out of the money and expire this week. They currently trade for 0.01 at the mid point – take them off at any time this week.
2/21/2021 Close:
The DKNG put spreads expired worthless last week, bringing in another $68 in profit per spread – enjoy the win!
Reach out with any questions on this or any other trade!
