12/19/2021 Plan:
This week we look at the bookface, I mean “Meta Platforms” (Ticker: FB)
12/19/2021 Plan (continued):
- FB – Sell the Jan 7 300/295 put spread for .45 OR
- FB – Sell the Jan 14 300/295 put spread for 0.66
- PRU – Sell the Jan 21 97.5/92.5 put spread for 0.55 OR
- PRU – Sell Jan 21 97.5 put for 1.20
- Prices are as of market close 12/17/2021, 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
12/19/2021 Commentary:
Much like Google changing their name to Alphabet and everyone still calls it Google, this week we look at a trade in Facebook (officially “Meta Platforms”)
There is nice support at the 300 level, having not spent much time below that since April. This trade assumes FB doesn’t drop 33 handles, or about 10% between now and Jan 7.
I have traded in and out of PRU for years and think puts and put spreads below 100 are solid trades. I’ll personally be selling a cash secured put (CSP) at 97.5, but feel free to spread it with the 92.5 (as mentioned above) or even the 90.
Feel free to Reach out with questions on this or anything else!
12/20/2021 Entry:
Big down day. Hold off if you want less vol. could sell FB 12/31 300/295 put spreads for 0.54. Sold PRU Jan 21 90 puts for 0.95.
12/24/2021 Update/Partial Close:
A terrific snap back after Monday and short puts/put-spreads did Really well last week. I closed the FB put spreads for 0.03, they can now be closed for 0.02 if you did not. Reminder they expire this week. A nice, quick 1 week win that benefited from the strong move Tuesday through Thursday.
The PRU puts are down to 0.20. I plan to close on Monday. We are tying up almost $9k of capital and I can find better uses for 4 weeks with the money (hint, I’ll be selling more puts…). This will be another nice quick win. If you Don’t have additional trades, there is little risk in waiting to collect the additional $20, just make sure you stay on top of it and don’t let it become a loser.
1/2/2022 Close:
As discussed in last week’s update, I closed the short PRU puts – I did it for 0.15 on Friday, for a win of $80 on the trade. A nice return in just 11 days and now I can reallocate that capital to other trades.
