10/31/2021 Plan:
This week we look at airbnb (Ticker: ABNB)
10/31/2021 Plan (continued):
- ABNB – Sell the Nov 19 150/145 put spreads for 0.55. OR
- ABNB – Sell the Nov 19 150 put for 1.49
- TWTR – Sell the Nov 19 50/47 put spreads for 0.40
- C – Sell the Dec 65 put for 0.69
- Prices are as of market close 10/29/2021, 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
10/31/2021 Commentary:
Airbnb has moved up quite a bit over the past few months. Looking at the fees I paid for two different airbnb stays this year, I’m not surprised… This trade includes earnings so it is a bit riskier as there are often large moves around earnings. With $20 between the current stock price and our short strike I am comfortable with the risk. For larger accounts or those willing to acquire shares, the put can be sold for 1.49. To make it a trade and/or to reduce margin, consider the put spread.
Twitter sold off heavily after earnings. This trade assumes the fall stops and doesn’t go below 50.
The Citigroup put sale is a straightforward play to go long C at lower levels. Do not place unless you’ll take the shares or are willing to roll. It can also be spread with a lower strike.
Feel free to Reach out with questions on this or anything else!
11/1/2021 Entry:
ABNB and TWTR both up. Passed on ABNB for now. Sold TWTR Dec 3 50/45 for 0.54. Note wider strikes, size accordingly. C also up and put isn’t currently available at these prices. Will watch.
11/7/2021 Update:
We are currently down on the TWTR put spreads, but as we still have quite a bit of time and TWTR is above our short strike, we’ll stay patient.
As mentioned in the alert, we kept the ABNB 150/145 put spreads on watch and they were available on Tuesday for up to 0.50. I sold a couple for an average price of 0.485. ABNB promptly exploded after earnings and I will look to close then out tomorrow to book the quick win and reallocate the capital to other trades. I expect to be able to close them for about 0.08.
11/13/2021 Update/Partial Close:
We are still down some on our TWTR put spreads, we still have several weeks and with TWTR more than a couple dollars above our short strike, we’ll plan to simply wait longer.
With ABNB above 200 on Monday, I was able to close the put spreads for just 0.02. A great quick win of $48/spread or $96 for the two spreads sold.
11/21/2021 Update:
Our TWTR put spreads are currently down. We have two weeks remaining for the name to recover above the 50 strike. One can take the loss now to limit exposure. Some recent wins will offset the loss. I’ll personally be holding through this week to see if TWTR turns around. As always, size these positions so that a total loss doesn’t greatly impact your trading account!
11/27/2021 Update:
Our TWTR put spreads are still down and they expire this week. If we have a big rally in TWTR, terrific. If not, we’ll look to roll/adjust later in the week. If TWTR falls, we will end up taking a loss on the trade.
12/5/2021 Close:
Well that was a wild week in TWTR. A lot of our members go out on Monday after the announcement that Jack Dorsey, the CEO, was leaving Twitter and TWTR spent some time in the low 50s on Monday. Unfortunately, the window wasn’t very long and TWTR sold off all week. To err on the conservative side, we’ll mark the trade as a full loss as not everyone was able to get out on Monday and we’d rather keep our records conservative.
