12/4/2022 Plan:
This week we look at a trade in airbnb (Ticker: ABNB)
12/4/2022 Plan (continued):
- ABNB – Sell Dec 30 87/82 for 0.51
- Prices are as of market close 12/2/2022, 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
12/4/2022 Commentary:
Airbnb had a low at the end of June just a bit below 87 (86.71) and it closed well above that level that day. This trade which lasts the rest of December is a bet that we won’t re-test those lows. There are no earnings between now and then. The market is still volatile, but with ABNB trading at 101, I like this play. The market is implying a roughly $10 move between now and then and our short strike has some buffer beyond that.
Feel free to Reach out with questions on this or anything else!
12/5/2022 Entry:
Sold ABNB 87/82 put spreads for 0.52
12/11/2022 Update:
The ABNB put spreads moved against us and are worth 0.90. No action planned for this week. We have three weeks left and about $7 between the stock price and our short strike. If one hasn’t put on this trade and wants to enter it, the 84/79 looks pretty good at 0.59.
12/18/2022 Update:
We still have another couple weeks on the ABNB put spreads and we’re only a couple dollars away from the short strike. I’m holding on to the trade for now.
12/24/2022 Update:
The ABNB put spreads are down and they expire this week. Unfortunate, but without a move up, we’ll have a loser on this trade. If it stays at this level or moves up a bit, one may be able to roll to a future week for a credit to extend the trade. ABNB can move multiple dollars per day, so we’ll see how it looks later in the week.
