6/13/2021 Plan:
This week we look at a couple put spread options in Match Group (Ticker: MTCH)
6/13/2021 Plan (continued):
- MTCH – Sell the Jul 16th 130/125 put spread for 1.01 OR
- MTCH – Sell the Jul 16th 125/120 put spread for 0.50 or higher
- RKT – Sell the Jul 9 17 put for 0.21+
- DAL – Sell the 43/41 Jul 16 put spreads for 0.28
- Prices are as of market close 6/11/2021, 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
6/13/2021 Commentary:
Match has a pretty wide range, but has spent the year above the 130 level and this trade assumes we don’t breach it. Spreads are a bit wide on my platform for the 120 strike, but I’ll be taking a look at the 125/120 during lunch tomorrow to see if I can get a good fill on that spread and leave a bit more room for MTCH to drop before it would risk breaching our short strike.
We just closed out of successful RKT puts last week and we look for an even lower entry to add shares.
If you are looking for a “re-opening” trade, I like having exposure to airlines like Delta. I won’t personally be adding it (I have bullish exposure to Delta already), but like the name to stay above 43 for the next month.
Feel free to Reach out with questions on this or anything else!
6/14/2021 Entry:
Sold RKT July 16 17 put for 0.21
Sold MTCH July 16 130/125 put spreads for 0.59
6/20/2021 Update:
The RKT puts are worth 0.36 and we are down on the trade. No planned action this week – we are prepared to take shares if needed.
The MTCH put spreads performed Very well. It could likely be closed for 0.25-0.30 or so. No action planned here as MTCH moved up nicely and our spread is pretty far out of the money.
6/27/2021 Update:
The RKT puts are now worth 0.16 and we are winning on this trade. No planned action this week.
No change to the MTCH put spreads – quite far out of the money and we’ll let them sit for another week.
7/5/2021 Update:
The RKT puts didn’t move much but are down to 0.13 and this trade is profitable. They expire in another 2 weeks and I plan to continue to hold it.
With MTCH above 160, our put spreads are not worth very much at all. You can try and close cheaply to free up the margin or leave them on to let them (likely) expire worthless in a couple weeks. I may start trying to buy them back cheaply this week <=0.05.
7/11/2021 Update:
The RKT puts expire this week and are currently worth 0.07. You can close at any time to book the profits. I’ll be leaving it on until expiration as I am ok taking shares. Another approach is to place an order for 0.01 or 0.02 to close.
The MTCH put spreads are $32 out of the money and Very likely to expire worthless. If you still have them open, you can close for a few cents or let them expire this week. These will bring in $59/spread of profit, a nice win that was never really at risk of being a loser.
7/17/2021 Close:
The RKT puts expired worthless, adding $21 of profit per put sold. I actually bought it back for 0.01 as I was traveling that day and the Silver records will reflect that purchase. RKT really sold off recently, so if we trade it again, we’ll be able to enter at lower levels.
The MTCH put spreads remained $30+ out of the money and expired worthless for an additional $59 of profit per put spread sold.
