5/9/2021 Plan:
This week we take look at a trade in Match Group (Ticker: MTCH).
5/9/2021 Plan (continued):
- MTCH – Sell June 11th 130/125 put spreads for 0.46
- MARA – Sell this week’s 27/24 put spreads for 0.36*
- DAL – Sell May 28 43/41 put spreads for 0.22
- Prices are as of market close 5/7/2021, 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
5/9/2021 Commentary:
Match Group, which owns a portfolio of online dating apps like Match, OkCupid, and Tinder moves quite a bit as evidenced from the above stock chart. It also has great support at 130 and this trade assumes it will stay comfortably above that level for the next several weeks.
*This week’s Very speculative (repeat VERY) trade is a put spread in MARA. Earnings are this week and this name moves quite a bit. I personally am ok taking shares if it ends between 27 and 24 for my speculative portion of my portfolio and will be sizing accordingly.
The DAL put spread is a straightforward play similar to our recent DAL trade, just at slightly lower strikes.
Feel free to Reach out with questions on this or anything else!
5/10/2021 Entry:
Sold MTCH Jun 11 130/125 put spread for 0.66. With the downturn in many ‘tech’ names, this is now more speculative.
Big sell-off in MARA – may want to pass on this one. This week’s 25/22 sells for 0.33
Sold DAL Jun 4 43/41 put spreads for 0.26 – note 1 week further.
5/15/2021 Update:
The MTCH put spreads are worth a bit less at the mid-point after a choppy trading week. No planned action this week in the name.
The DAL put spreads are essentially flat after the week, with a tiny bit of profit. No planned action this week either.
5/23/2021 Update:
The MTCH put spreads are nicely profitable with 0.16 at the mid point. With a few weeks to go, consider taking off some of these if you are running light on margin and want to re-allocate to other trades.
The DAL put spreads remain pretty flat and still have a couple weeks to go. We’ll hold for the time being.
5/31/2021 Update:
The DAL put spreads are only worth a couple cents. Close out some time this week as they expire on Friday. Nice profitable trade.
The MTCH put spreads are down to about 0.30, reflecting a nice profit so far. I will keep them on through this week to try and capture more premium.
6/6/2021 Update/Partial Close:
The DAL put spreads expired worthless, bringing in $26/spread. That win will cover a ticket for a trip I’m taking this fall… thanks Delta!
After a sell-off in MTCH, the put spreads are now worth about 0.45. Still profitable on the trade and it expires this week. Take off early and book the win, or accept a bit more volatility in your portfolio and leave it open longer. I’m personally holding for now.
6/13/2021 Close:
The MTCH put spreads expired worthless, bringing in $66/spread sold. That was a little over a 15% return in the month we had the trade open – a great result.
