Closed ITB early for a $30 gain.

music selection:  “No One Is To Blame” — Howard Jones

I posted early today that ITB was threatened.  I was able to catch a bid and close for a small profit, thereby taking some risk off the table.  On 24MAY2021, I bought the 65/70 strikes bull call spread in ITB for 3.27 a share (15 spreads).  I sold today for 3.29 a share.  I booked a $30 dollar short term capital gain.  The gain is 0.6% over 50 days or 4% annualized.  Doesn’t move the needle.  I just wanted to get the risk off the table as the position was scheduled to expire Friday.

Bull call spreads with July expiries in CCI and WELL are both well in the money.  I expect total realized gains for July to come in at 10,520.  I am on a similar pace for both August and September.

Devour your prey raptors!

Capitulate ITB bull call spread

Never miss another opportunity to devour prey!

4 thoughts on “Capitulate ITB bull call spread

  • July 13, 2021 at 4:05 pm
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    nice trade on ITB. Never know what it will do but the thesis didn’t seem to be panning out so smart move I think. Small profit feels so much better than a small loss too!

    Reply
  • July 15, 2021 at 3:52 pm
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    In cases like the threatened ITB spread, do you consider just rolling the spread to safer strike prices? E.g. Close the 65/70 bull call spread and open a 60/65 bull call spread with the same expiration date? This would be a net debit and would be putting more money on the table, but would lower assignment risk.

    Reply
    • July 16, 2021 at 12:18 am
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      Chris,

      I’ve never tried that. Putting more money in when you already in a loss position makes the potential gain (if the underlying doesn’t continue to move in the wrong direction) very small for the additional risk taken on. That would probably make sense if the trades net credit bull put spreads or bear call spreads because you’d take on a new credit, cutting your loss and reducing your risk.

      Reply

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