Closed bear put spreads in WST and O early.

music selection:  “Be Near Me” — ABC

On 22MAR2021, I bought a bear put spread in WST with 16APR 2021 expiry and 300/310 strikes for 9.08 a share.  I had five spreads.  The spread was in a bad place this morning with only 3 days left till expiry. I closed early for 3.45 a share to ensure I didn’t book a complete loss.  I booked a loss of 2,815 (62%) over 24 days.

On 8MAR2021, I bought a bear put spread on O with 16APR2021 expiry and 65/70 strikes for 4.70 a share.  I had ten spreads open.  With the low strike about 25 cents out of the money, I elected to sell today for 4.27 a share.  Over 38 days, I booked a loss of 430 dollars (9.1%).

My remaining positions with expiry this Friday look fairly safe and are currently on pace to bring in 1,808 in profits.  There is the matter of two hedges in GME and CONN that will expire worthless.  Overall, I expect net trading profits of 3,711 for the month of April.

Devour your prey raptors!

Reduce risk by taking losses in WST and O

Never miss another opportunity to devour prey!

One thought on “Reduce risk by taking losses in WST and O

  • April 15, 2021 at 3:42 am
    Permalink

    Falling volatility means spreads are getting more expensive and is a supporting factor for your luck with credit spreads. This could also be the perfect environment to play credit condors. E.g. if both “wings” are relatively expensive, the win scenario becomes a larger and larger percentage of the amount at risk. I also like the strategy of rolling the UNCHALLENGED side of a failing condor for additional credits, sometimes to the point of erasing the potential for loss. Heads I win a lot; tails I lose a little. Seems perfect for an active investor like yourself, FV.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.