This week’s bear spread is in PG.

music selection:  “I Will Remember” — Queensryche

weigh-in:  219.8 (0.6)

Procter & Gamble (PG) is a consumer goods company and dividend aristocrat.  It has raised distributions for 57 consecutive years.  It is a mature, slow moving company that is well suited to in the money spreads.  I like the technical chart for a bear spread here.  The stock has been in a downtrend since 9NOV2020 and the RSI is a little over 25, still not in “oversold” territory.  All indications are the downtrend should continue.

I bought the 140/145 bear put spread with 19MAR2021 expiry for 4.50 a share.  I have 8 spreads putting 3,600 dollars of capital at risk in the trade.  With shares trading at 130.55, I have 7.24% downside protection against a rally in price.  The trade will be in force for about 54 days and should downside protection not be breached, will be worth 5.00 a share at expiry.  That would be good for 400 dollars in profit or 11% on capital at risk which is 75% annualized.

I now have 8 spreads active.  Seven are well in the money while LNG is threatened, with the high strike 3.31% out of the money.  If LNG were to expire today, I would still earn 22% on my capital at risk thanks to a very attractive entry price.  I will be monitoring that one closely. The remaining trades look to deliver over 14,000 in profit by March 19.

Devour your prey raptors!

Procter and Gamble (PG) spread with yield up to 75%

Never miss another opportunity to devour prey!

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