7/17/2021 Plan:
This week we return to Airbnb (Ticker: ABNB)
7/17/2021 Plan (continued):
- ABNB – Sell the Aug 6th 120/115 put spreads for 0.61
- RKT – Sell the Jul 30th 15.5 put for 0.20 OR
- RKT – Sell the Jul 30th 15 put for 0.15 OR
- RKT – Sell the Jul 30th 16/15 put spread for 0.12
- Prices are as of market close 7/16/2021, 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
7/17/2021 Commentary:
With ABNB earnings on the 12th of August, we look to sell a put spread expiring the week prior. ABNB has come down quite a bit and the implied volatility has risen in response. The put spread is positioned almost $10 below the low hit in May. One could sell the 125/120 put spread for a larger credit, but with a lower probability of expiring out of the money.
Warning on the RKT puts as this name has sold off quite a bit. Only sell the puts if you will take ownership of the shares.
The market, while still near all time highs has cooled off just a bit and is approximately 1.5% off the all time highs. Some names are off quite a bit more, though, so keep an eye on your positions and make sure you are comfortable with the risk you have on. If you aren’t sleeping at night due to the markets – you have too much at risk.
Feel free to Reach out with questions on this or anything else!
7/19/2021 Entry:
Sold Aug 6 120/115 put spread in ABNB for 0.72. Sold RKT Jul 30 15 put for 0.18. Market has sold off careful on position size.
7/25/2021 Update:
The RKT puts are now only worth 0.05, take them off at any time this week. I will put an order out for 0.01 or 0.02. If it isn’t filled by Friday and RKT remains well above our short strike, I’ll just let them expire worthless.
The ABNB put spreads have done Very well after just a week and are now only worth 0.16. If you close tomorrow that is a quick $56 profit/spread. There is still 2 weeks until expiration, so closing now and reallocating the capital if you are short on margin is a good idea as you can put that money to work elsewhere and likely get more. If margin isn’t a concern, feel free to leave it on and try to capture more decay. I’m doing the latter.
8/1/2021 Update/Close:
The RKT puts expired worthless adding $18 of profit per put sold.
The ABNB put spreads are basically worthless, I closed them for 0.02/spread, you can do the same or let them (almost certainly) expire this week. At my closing price of 0.02/spread, that brings in $70 of profit per put spread sold, a very nice win in a short period of time!
8/7/2021 Close:
If you hadn’t closed the ABNB put spreads already, the expired worthless for a total profit of $72 per put spread sold! ABNB announces earnings this week and I’ll be looking for a trade After it is announced.
