Open a new spread and closed another early.
music selection: “Whip It” — Devo
weigh-in: 185.8 (3.8)
On 26JUL2021, I entered a bull call spread in MDLZ at the 59.5/64.5 strikes with 20AUG2021 expiry for 4.1383 per share (12 spreads). I put 4,966 in capital at risk. The spread moved against me and has been threatened for most of the last week. It turned briefly in the green this morning so I took the opportunity to close for 74 dollars in profit and to take some risk off the table.
I like the chart of TE connectivity (TEL) so I opened a bull call spread this morning. With shares trading at 152.57, I bought the 145/150 spread for 3.55 a share (14 spreads) at the 17SEP2021 expiry. I have 4,970 dollars of capital at risk over 33 days. The trade enjoys 2.64% downside protection to the break even point. Should the underlying finish above 150, I will earn the full profit of 2,030 in the trade. That is good for 40.8% or 452% annualized.
I opened another Bull spread this morning as well but the play was recommended behind a paywall and I don’t think it is fair to the subscribers to give that away. I will report the results when I close the trade.
I have four spreads expiring on Friday and they are all well in the money. Should that hold, my P&L on closed trades for the month of August will come to 13,339. So far, September is looking equally as strong.
Devour your prey raptors!