7/10/2022 Plan:
This week we look at Roblox (Ticker: RBLX)
7/10/2022 Plan (continued):
- RBLX – Sell teh Aug 12 28/25 put spread for 0.35
- Prices are as of market close 7/8/2022, 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
7/10/2022 Commentary:
This week’s trade a bet that the Roblox’s recent rally from the low 20s holds and we don’t have a large sell-off in the next month. With RBLX at 41.25, we’d need to cut RBLX by about 1/3. Note – this is a riskier play, even with the large amount of downside and RBLX could certainly reach these levels given it is a highly volatile name. It trades as high as 141.6 back in November. If you want less volatility in your account, feel free to skip this one.
Feel free to Reach out with questions on this or anything else!
7/11/2022 Entry:
Sold Aug 12 RBLX 27/24 put spreads for 0.37. Riskier trade. Lower strikes than planned with the sell off.
7/17/2022 Update:
Still pretty early on the RBLX put spreads and we’re up a couple dollars. With a lot of time to go, these will decay pretty slowly initially unless there is a Huge move up. We’ll be patient, no action planned.
7/23/2022 Update:
The RBLX put spreads could be closed now for 0.24, which means we’ve made about 1/3 of the profit so far. I plan to leave them alone this week and look to capture some more decay.
7/31/2022 Update:
The RBLX put spreads can be closed for 0.09 or a $28 profit per put spread sold. With RBLX near $43 these are pretty low risk. I’ll likely hold through this week, but no harm in taking them off to book the profit.
8/6/2022 Update:
With RBLX Way up near $50/share, our 27/24 put spreads are pretty safe. They can be closed now for 0.02 or held through expiration where they will likely expire worthless.
8/14/2022 Close:
RBLX ended above $51/share, making our 27/24 put spreads expire worthless. We made $37 per put spread sold on these, a nice win.
