7/17/2022 Plan:
This week we look at FedEx (Ticker: FDX)
7/17/2022 Plan (continued):
- FDX – Sell the Aug 5 195/190 put spread for 0.50 or
- FDX – Sell the Aug 19 190/185 put spread for 0.50
- DIS – Sell the Aug 5 87/82 for 0.45 or 88/83 for 0.55
- Prices are as of market close 7/15/2022, 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
7/17/2022 Commentary:
This week’s trade looks at a couple ways to play FedEx and assumes it stays above 195 in the shorter term approach or 190 in the longer term approach. I’d consider either a decent high probability play that will likely result in bringing in the full premium (no guarantee here, of course).
The Disney (Ticker: DIS) trade assumes that most of the sell off in Disney is behind us. Note that earnings are on August 10th, so don’t push it another week. I am leaning towards the 87/82 personally as picking a bottom can be dangerous…
Feel free to Reach out with questions on this or anything else!
7/18/2022 Entry:
Sold Aug 19 for 195/190 put spreads in FDX for 0.59. Closed INTC spreads for 0.03.
7/23/2022 Update:
The FDX put spreads can already be bought back for 0.30 – we’ve captured about half the premium in a week. One can take the quick win and move on or hold longer to try and squeeze more profit out of the trade (and keeping the risk on the table). I’m personally doing the latter.
7/31/2022 Update:
The FDX put spreads can now be bought back for 0.08 or a $51 profit per put spread sold. We still have 3 weeks on these and I may look to take off for 0.05 if possible.
8/6/2022 Update:
The FDX put spreads are currently priced at 0.01 at the midpoint. With 2 weeks left, I’ll try to take them off on Monday. It may cost 0.02 or 0.03 to do so as the bid/ask is 5 to 6 cents wide. This will be a nice profitable trade. If you have a lot of buying power you could hold for the two weeks, but generally booking the profit and moving on is preferred vs. even a small risk of losing it all.
8/14/2022 Update:
I didn’t take off the FDX put spreads as intended, but if you did you enjoyed banking the profits. They expire this week and should go out worthless, I’ll still try to close for 0.01 or 0.02
8/22/2022 Close:
The FDX put spreads expired worthless, adding a nice $59 per put spread sold in profit to the account. A fairly straightforward trade and this one went our way early and was never really in danger.
