I closed a bear put spread in PPG and had shares of HRL assigned early.

music selection:  “Tell Everybody” — Jane Jensen

On 23NOV2020, I purchased 17 bear put spreads with the 52.5/55 strikes in Hormel (HRL) for 2.0822 a share.  800 shares were assigned early this morning.  I exercised my long puts to close out the hedge.  I earned 334 dollars on 1,666 capital at risk over 53 days.  That is good for 20% return or 138% annualized.  The remaining 9 spreads expire tomorrow and are well in the money.

On 7DEC2020, I purchased 9 bear put spreads in PPG Industries (PPG) for 4.15 a share, using the 155/160 strikes.  Those spreads were set to expire tomorrow. While the spread was in the money, it was threatened by a share rally that had reduced downside protection to just 0.79%.  I decided to take profits early to avoid an un-hedged assignment.  I got 4.80 a share upon selling. I made 585 dollars against 3,735 of capital at risk over 39 days.  That is good for 16% return or 147% annualized.

I have four spread positions expiring over the weekend, all of which are currently well in the money.  Also, my VXX long puts at the 18 strike are in the money and I’m approaching my target exit price of $10.00 a share.  That will add 1,530 in profit to the month.  An older set of VXX long puts remains out of the money at 13 strike.  I could be holding that for some additional months before I am able to gracefully exit.

Devour your prey raptors!

Close PPG spread

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2 thoughts on “Close PPG spread

  • January 14, 2021 at 6:07 pm
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    Congrats! Do you plan to play VXX again, or maybe wait until potential volatility around the inauguration.

    Reply
    • January 15, 2021 at 2:29 am
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      I think I will roll it but I may reduce my exposure in % terms of portfolio. I’m highly exposed because of the additional 13 strike puts that remain from before the pandemic. I doubled down post pandemic.

      Reply

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