8/1/2021 Plan:
This week we look at Intel (Ticker: INTC)
8/1/2021 Plan (continued):
- INTC – Sell the Sept 3rd 50/47 put spread for 0.30
- HIG – Sell Aug 27nd 60/58 put spread for 0.25
- Prices are as of market close 7/30/2021, 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
8/1/2021 Commentary:
A couple of put spreads this week. I’ll also provide some short put ideas that I’m looking at in my portfolio. First the INTC put spread is based on INTC continuing its trend of selling off after earnings and then recovering which it has done quite regularly over the last few cycles. We give it some room in case it dips again over the next several weeks. One could go with a closer put spread to take in more credit. I would keep it at the 52 strike or below.
The HIG trade assumes that HIG maintains the 60 level for the next ~4 weeks. It dipped briefly intraday back on the 8th of July, but closed above it. Other than that, HIG has been above 60 since the unsolicited offer from Chubb to buy it out in March.
I’m looking at several short puts this week, including – ABBV, C, GILD, CVX, SPLK, and a speculative one in RBLX (August 13th 70 put for at least 0.70).
Please only sell puts if you are ok holding shares for the longer term, otherwise consider a put spread.
Feel free to Reach out with questions on this or anything else!
8/2/2021 Entry:
Sold HIG Sept 3 60/58 put spreads for 0.30. 1 week later. INTC not available per plan, sold 51/48 put spreads sept 3 for 0.36. Higher credit and higher probability of a loss.
8/7/2021 Update:
HIG moved up well last week and our put spreads are in very good shape. With multiple weeks left, no planned action this week.
The INTC put spreads can be closed for 0.25 for a quick win or left to try and capture more decay. I’m doing the latter.
8/14/2021 Update:
The HIG put spreads are now very far out of the money with HIG at $68. We still have 3 weeks left on this trade. I’m going to try and close mine for 0.05.
The INTC put spreads are down to 0.20. No planned change to this trade and we’ll try to capture another week of premium.
8/21/2021 Update:
As mentioned during last week’s update, I tried to close the HIG put spreads and was successful at 0.03. If you didn’t, you can close this week for very cheap. This was a $27 winner per spread. You could also close this and the INTC put spreads that are down a bit and be up overall on this week’s trades.
The INTC put spreads could have been closed last week or the week before for a quick profit, if you left them on (I did as discussed), they are now down and it will cost us 0.43 to close for a 0.13 loss per spread. Personally, I’m keeping it open for now, but if you want to remove risk, you can certainly take part of your position off and see how the rest does, particularly given it is offset by the nice HIG win.
8/28/2021 Update:
INTC (and the market) recovered nicely this week and the put spreads are now worth only 0.03. Close at any time and enjoy the win! I will be trying to close Monday if I can for 0.02 or 0.03
9/4/2021 Close:
The INTC put spreads expired worthless, for a nice $36 profit per spread sold. That closes out all the positions from this week, all winners. Which is nice.
