6/11/2022 Plan:
This week we take a look at Allstate (Ticker: ALL)
6/11/2022 Plan (continued):
- ALL – Sell the Jul 115/110 put spread for 0.60
- SPY – Sell the Jul 15 420/425 call spread for 0.60 (Bearish idea)
- Prices are as of market close 6/10/2022, 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
6/11/2022 Commentary:
For many members, I recommend avoiding trading if you’re not comfortable with the downswings – I’m providing a ‘standard’ put spread, but with elevated volatility and the market selling off, unless you really need a trade or you would take shares of ALL at 115, passing is fine.
I’m also sharing a way to profit if the sell off continues (or simply if the SPY doesn’t rally 30 points in the next several weeks). This short call spread will capture 0.60 if SPY stays below 420. A nice thing about this type of trade is that even if SPY Does rally above 420 and we take the full loss (above 425) the rest of one’s investing portfolio is likely in much better shape that the small loss doesn’t hurt too much.
Feel free to Reach out with questions on this or anything else!
6/13/2022 Entry:
Sold July 15 115/110 put spreads in ALL for 0.67
6/18/2022 Update:
Down some on the ALL put spreads but no planned action this week. If the market doesn’t recover, then we take a loss and move on. Our hedges will also help take the sting out of some of these. As a reminder – Not trading is fine until the market rebounds or lean more on your short delta trades.
6/26/2022 Update:
The market has rallied, taking ALL with it. I will try to close the put spreads for 0.05 on Monday and lock in the gain with three weeks before expiration. This would be a nice quick win!
7/10/2022 Update:
The ALL put spreads are looking really good with expiration on Friday and a high probability we will capture the full premium. No planned action this week, but certainly feel free to close at any time for a little bit to take the risk off the account.
7/17/2022 Close:
The ALL put spreads expired worthless, adding $67 of profit per spread sold. A nice win and certainly a name to consider in the future.
