9/19/2021 Plan:
This week we look at JP Morgan (Ticker: JPM)
9/19/2021 Plan (continued):
- JPM- Sell the Oct 8th 150/145 put spread for 0.59
- TTWO – Sell the Oct 1 145/140 put spread for 0.65 – more volatile trade
- Prices are as of market close 9/17/2021, 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
9/19/2021 Commentary:
This week we look at a pretty straight forward put spread sale in JPM. The implied volatility is pretty high in JPM as the market overall has experienced higher vol. This trade assumes the 150 level will hold. It is just outside the expected move by the 8th and as with any trade we size it with the assumption we could lose it all. As JPM hasn’t spent time below 145 in a long time, a full loss is unlikely.
If the TTWO trade that just closed wasn’t too volatile for you, we can repeat the trade at lower levels this week to try and take in a nice premium.
Need some put sale ideas for longer term investments – reach out!
Feel free to Reach out with questions on this or anything else!
9/20/2021 Entry:
Big down day on the market. Please remember Not taking a trade is perfectly acceptable. If people aren’t comfortable with big days like this and/or don’t have other diversified positions to balance, one can consider simply waiting for the market to stabilize and bounce back a bit before adding more risk. If you are in a position to add more risk in these volatile environments, the TTWO 140/135 Oct 1 put spread was available for 0.48 (lower strikes) and the JPM Oct 1 145/140 put spread was available for 0.52 (lower strikes, 1 week earlier). Again, waiting is a fine approach, so don’t force trades.
9/27/2021 Update:
The TTWO put spreads are worth very little now and can be closed at any time. They expire this Friday as a reminder.
The JPM put spreads are worth even less and can be closed for 0.01 or 0.02 most likely. They also expire Friday. JPM is up strongly since we sold this position, close at your convenience. They are Likely to expire worthless, but closing guarantees the win.
10/2/2021 Close:
Our TTWO put spreads expired worthless, for another $48 per spread in profit. The JPM put spreads Also expired worthless for another $53 per spread in profit. All told that is another $202 in our accounts.
