10/2/2021 Plan:
This week we look at Twitter (Ticker: TWTR)
10/2/2021 Plan (continued):
- TWTR – Sell the Oct 22nd 58/55 put spread for 0.44 OR
- TWTR – Sell the Oct 22nd 59/56 put spread for 0.56
- LOW – Sell the Oct 22 195/190 put spread for 0.70 (expect to get less)
- Prices are as of market close 10/1/2021, 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
10/2/2021 Commentary:
Take a look at the chart of TWTR, it could not breach $60 during the big sell off last week on Wednesday (it did dip temporarily on Thursday). With the big rebound on Friday, we assume that we’ll stay above 60 for a few weeks. Lots of spreads possible to take advantage and a couple educational ideas are provided. I’m personally leaning towards the 58/55.
I like Lowes long-term and this put spread assumes we’ll stay well north of 195 for 3 weeks. Spreads are a bit wide, so we may play a bit with the strikes (but almost certainly <=200 for the short strike).
Need some put sale ideas for longer term investments – reach out!
Feel free to Reach out with questions on this or anything else!
10/4/2021 Entry:
TWTR and the market overall is down pretty big. For Most newer investors, just skip this trade. If still interested, consider the 53/50 for 0.33, but may want to wait and see if the market bottoms and starts to recover first.
LOW put spread was traded for 0.70. Can probably get a bit more.
10/10/2021 Update:
With TWTR recovering well, the put spreads we sold for 0.33 are now only worth 0.05. With a full two weeks left in the trade, I’ll try to take them off for the nickel.
The LOW put spreads are also performing well, worth only 0.23 at the mid point. I’ll probably leave them on a bit longer, but certainly one could close this to book the quick win and re-deploy capital elsewhere.
10/16/2021 Update/Partial Close:
With LOW nearing $220/share, the put spreads are nearly worthless and they can be closed for 0.02 or so. They expire this week and should provide a nice $70 profit per put spread.
As mentioned last week, I intended to take the TWTR put spreads off for 0.05 – instead they closed easily for 0.03 which adds a couple more dollars to the win. All told, we made $120 in a week, a great outcome! If you still have them, remember they expire this week.
10/24/2021 Close:
The LOW spreads expired worthless, bringing in $70 per spread or $140 overall. With LOW essentially moving straight up since we placed this trade, it was never really challenged. An easy one to manage – no complaints about a nice profit in a short amount of time!
