6/26/2022 Plan:
This week we return to Airbnb (Ticker: ABNB) and also a trade in Intel (Ticker: INTC)
6/26/2022 Plan (continued):
- ABNB – sell the Jul 22 85/80 put spread for 0.54
- INTC – Sell the Jul 22 35 put for 0.34 or the 36/33 put spread for 0.34
- Prices are as of market close 6/24/2022, 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
6/26/2022 Commentary:
We have had a big rebound in the market. Is it a dead cat bounce? Or have we seen the lows? No one -really- knows. Keep your position sizes in check or feel free to sit out until we stabilize more.
In the meantime, we have a couple trades that assumes we won’t revisit recent lows. I know AMD is taking market share from INTC, but INTC still sells a lot of product and I’d add shares at the 35 level. The put spread trade is a bit riskier (higher short strike) but offers a nice risk/reward assuming INTC doesn’t hit new 52 week lows.
Even with inflation, people still want to travel and ABNB is a good way to make a bet on the continued resurgence in travel. It would have to drop quite a bit, which it has in the past, for this trade to lose.
Feel free to Reach out with questions on this or anything else!
6/27/2022 Entry:
Sold ABNB Jul 15 85/80 put spreads for 0.50. 1 week earlier than planned. Sold INTC Jul 22 36/33 put spreads for 0.32. 35 put can be sold for 0.30
7/10/2022 Update:
With ABNB at 97.35, the 85/80 put spreads that expire this week are likely to go out worthless. No planned action this week. If I can get out for a couple cents I may do it to eliminate risk.
We still have two weeks on the INTC put spreads and they are currently profitable worth about 0.24. I plan to leave them alone this week trying to capture more decay. We’re about $2 out of the money.
7/17/2022 Update:
The ABNB put spreads expired worthless, bringing in $50 of profit per spread sold. Nice. This is a name I’ll likely continue to trade – note that earnings are in early August, which I’ll avoid.
The INTC put spreads are profitable, worth 0.08 and expiring this Friday. Close them out at any time. INTC is currently trading at 38.62, I’ll probably look to close when they are about 0.05.
7/23/2022 Close:
Per the alert on Monday, I closed the INTC put spreads for 0.03. If one held them through Friday the expired worthless. The profit (assuming a 0.03 close) was $29/spread. As this was a narrower spread, I sold more to maintain a similar amount of risk on this trade vs. others.
