12/18/2022 Plan:
This week we return to Disney (Ticker: DIS)
12/18/2022 Plan (continued):
- DIS – Sell Jan 20 80/75 put spreads for 0.45
- Prices are as of market close 12/16/2022, 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
12/18/2022 Commentary:
We return to Disney this week and look to sell even lower strikes – the 80/75. If there is a big pop in DIS on Monday, I would be ok re-selling the 85/80 as well. The recent low in Disney was 86 and change and this assumes we don’t move down drastically from there. The markets are often a bit quiet towards the end of the calendar year and we’d benefit from lower volatility with this trade.
As a bonus idea, I’m also looking to sell Jan 20 20 strike puts in IGT for 0.33
Feel free to Reach out with questions on this or anything else!
12/19/2022 Entry:
Sold DIS Jan 20 78/75 put spreads for 0.40. Note the lower shorter strike while keeping the long strike. This means we are receiving $40 of premium on a narrower spread. The risk reward is more favorable than the initial trade. The downside is that the market and DIS have sold off, continuing last week’s downtrend.
I also sold the Jan 20 20 strike puts in IGT for 0.35.
12/24/2022 Update:
The DIS put spreads are down to 0.25 for a gain of $15/contract sold. A nice move for just one week. There are still several weeks on this trade, so I’m sitting tight. If you put on a lot of contracts, given the narrower spread, you can take some off now to capture some profits and reduce your overall risk.
The IGT put is down to 0.31, a small gain after the first week. Again, no planned adjustments on this one and I intend to let it go to expiration.
