4/04/2021 Plan:
A few trade ideas this week, including a higher risk/reward put spread in Beyond Meat (Ticker: BYND)
4/04/2021 Plan (continued):
- BYND – Sell Apr 30 115/110 put spread for 0.71
- AMD – Sell Apr 23 75/73 put spread for 0.28 or 75/72 put spread for 0.40
- RKT – Sell Apr 30 18.5 put for 0.29
- Prices are as of market close 4/1/2021, 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
4/04/2021 Commentary:
We revisit BYND (yet again!) for a higher risk put spread. Lots of support above 120 and the 115 short strike will provide some additional buffer.
The AMD put spreads are fairly straightforward and offered as another trade idea. I am looking to get long near the 74 level and would prefer to see a dip in AMD before putting these on to have the short strike at 74 (vs. 75). With earnings on the 27th, I may wait until after that if a favorable trade doesn’t open up this week.
I would like to get long RKT shares at a lower level and this put sale would let me get in close to $18/share.
The market really took off on Friday, with SPY closing above 400 for the first time ever. With stocks literally at all time highs, consider the impact to your portfolio if the market takes a breather and sells off some. As always, maintain appropriate position sizing and monitor your risk levels.
Reach out with any questions on this or any other trade!
4/05/2021 Entry:
Sold BYND Apr 30 115/110 put spread for 0.71. AMD Apr 23 74.5/72 put spread for 0.27. RKT Apr 30 18.5 put for 0.25.
4/11/2021 Update:
The BYND put spreads are down to 0.52, a nice profit in the first week. I’ll be leaving these on for now to try and capture more premium.
The AMD put spreads are down to about 0.04. This would be a good close given we still have a couple weeks in the position.
The RKT puts are down a couple cents. No planned adjustments this week. We are prepared to take the stock if these expire in the money. With 3 weeks to go and RKT at 22.75, we’re still fairly out of the money.
4/18/2021 Update:
The BYND put spreads are down to 0.17 at the midpoint with 2 weeks of trading remaining. This is a nice win and can be closed now or you can leave it on to capture more. We’d be tying up the capital for another 2 weeks to make ~0.08 per week.
The AMD put spreads expire this week, if you didn’t already close them as mentioned last week.
The RKT puts are worth 0.12 at the mid point and expire Next week. I’m keeping these on as I expect them to expire worthless, but will take the shares if the market dips. If you are light on margin, feel free to book the win.
4/25/2021 Update/Partial Close:
The AMD put spreads expired worthless, taking in $27/spread sold. This was a bit more than 12% on our risk, a fine return.
The BYND put spreads are down to only 0.09 and worthy of a close when you have a moment. They are about $15 out of the money and we sold them for a nice 0.71. A nicely profitable trade. Reminder this does expire this week.
The RKT puts are down to 0.06 and expire this week – close when you can.
5/2/2021 Close:
The BYND put spreads expired worthless as did the RKT puts. Two more winners! We took in $71 for each BYND spread sold (a return of nearly 17% on our risk) and the RKT puts added $25.
Reach out with any questions on this or any other trade!
