12/24/2021 Plan:
This week we look at Splunk (Ticker: SPLK)
12/24/2021 Plan (continued):
- SPLK – Sell Jan 21 103/99 put spread for 0.53
- Prices are as of market close 12/23/2021, 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
12/24/2021 Commentary:
Splunk Inc. provides cloud and software solutions. Pretty generic, huh? You can check them out on their website, www.splunk.com – all the hot buzzwords are covered (security, platform, AI, etc.). They have been around since 2003 and our trade assumes they don’t go below their recent low of 105.45. We give ourselves a bit of room and place our short strike at 103. I would go as high as 104 or 105 depending on how the market opens on Monday.
Bonus idea if you have $15k to allocate to a trade? I like selling the Jan 21 150 puts in ABNB for ~1.80+.
Feel free to Reach out with questions on this or anything else!
12/27/2021 Entry:
Sold Jan 21 103/99 put spreads in SPLK for 0.49
1/2/2022 Update:
The SPLK put spreads are down to 0.38, for a current win of $11/spread. I plan to hold longer and attempt to capture more premium.
1/8/2022 Update:
The SPLK put spreads keep decaying (nice!) and are down to 0.24/spread. I’m holding for now with two more weeks of trading between now and expiration. SPLK is trading at almost 115. Keep an eye on the position if the market or SPLK sells off and try to avoid this one turning into a loser.
1/16/2022 Update:
SPLK is now above 122 and these put spreads are nearly worthless. Please note that they do expire this week and can be closed at any time. I may let these (likely) expire worthless if I don’t have time to close them manually.
1/22/2022 Close:
The SPLK put spreads expired worthless on Friday, closing out the last 2022 trade and adding a nice $49 of profit per spread sold.
