6/20/2021 Plan:
This week we look at a Airbnb (Ticker: ABNB)
6/20/2021 Plan (continued):
- ABNB – Sell the Jul 16th 135/130 put spread for 0.63
- JMIA – Sell the Jul 9 24 put for 0.48 (Only if you want shares!)
- Prices are as of market close 6/18/2021, 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
6/20/2021 Commentary:
Just received the bill for the second half of an upcoming Airbnb reservation for the family. Airbnb charges 14.2% as a “service fee” – not cheap! I expect good things for the company moving forward as more people travel this summer. I’m already long some shares and am adding this bullish trade tomorrow. If ABNB ends up between 135 and 130, I would probably take ownership of the shares.
The JMIA put sale is a high risk/higher reward trade. Do not, do not, do not place it unless you’ll take the shares. This name can really move. I will be a bit flexible with the strike and am seeking 2% or more on the risk.
I’m taking a look at some put sales in WD, DOW, and a pretty aggressive put spread in MDT. Reach out if you’d like to hear more.
Feel free to Reach out with questions on this or anything else!
6/21/2021 Entry:
Sold ABNB Jul 16 130/125 put spread for 0.48. 135/130 also available. Sold JMIA Jul 9 24 put for 0.53. Note that ABNB was done at lower strikes for less premium. You can take in more premium than planned by using the 135/130 strikes. As I will take shares of the stock ends between my short and long put, I prefer the 130/125.
6/27/2021 Update:
The ABNB put spreads are down to 0.28 for a nice profit after just one week. No planned change this week.
The JMIA puts can be bought back for only 0.14 – if you need to free up margin, this is a good place to do so.
7/5/2021 Update:
The ABNB put spreads can be bought back for about 0.15, which would make for a nice win. I’ll personally hold it a bit longer with the spread $20 out of the money. If you need some margin or want to take risk off the table, this is an ok candidate.
The JMIA puts are down to 0.10 and expire this week. Close it for the good size win some time this week or, if you will take shares, you can leave it open the full week. I’m leaving it open, personally. There is $43 in profit already in this trade!
7/11/2021 Update:
The JMIA puts expired worthless, which adds $53 of profit per put sold to our accounts!
The ABNB put spreads can be bought back for 0.05, which would be a profit of $43/spread sold. They are about $20 out of the money and expire this week.
7/17/2021 Close:
The ABNB put spreads expired worthless for a profit of $48/spread sold. Having just taken a Airbnb trip a couple weeks ago, this is like a little bit of a rebate!
