Bought a bear put spread in PPG Industries (PPG).
music selection: “Heading Out To The Highway” — Judas Priest
weigh-in: 215.8 +2.0
No positions expired over the weekend and all my main trades are free from need of adjustment. My weekly trade is in PPG Industries (PPG). I am going with an in the money Bear Put Spread. Going in the money gives me protection against the price moving up against me while still allowing the spread’s full profit to be realized. I like it when I can be “wrong” and still make money. Anyone who has traded can tell you how easy it is to be wrong!
With shares of PPG trading at 145.46, I bought 9 spreads at the 155 and 160 strikes for 4.15 a share. The trade will be in force for about 40 days and enjoys 6.56% downside protection against an undesirable price move. I have 3,735 in capital at risk and should protection not be breached, I will earn 765 dollars or 20% over 40 days which annualized to 187%. This gives me 11 core net debit spread positions. Seven of those expire on 18DEC2020 (about 12 days). The seven positions just mentioned are all in the money and look good to produce 8,072 in profits.
Devour your prey raptors!