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NaughtyPines
Oct 25, 2019 2:24 AM

OPENING ("THE KID"): HYG DEC 20TH 87 SHORT PUT Long

iShares iBoxx $ High Yield Corporate Bond ETFArca

Description

... for a .95 ($95) credit.

Notes: She's gone quite aggressive here, selling the first out-of-the-money strike with a break even at 86.05. She'll look to roll for duration on extrinsic approaching zero to the first out-of-the-money short put for a credit or, at the very least, toward current price for a credit, looking to emulate HYG's annualized dividend (currently 4.56) without actually being in the stock. She said she's fine with taking assignment at 86.05, but would prefer reducing cost basis "as much as possible" before taking on shares.

She liked my "not a penny more" idea (See Post Below), called it "nice" but "not aggressive enough." Kids nowadays ... . We'll see how her "aggressive" goes.

Trade closed manually

With 10 DTE, covering for .37, a .58 ($58) profit.
Comments
420snoop
smart kid; does she tutor?
NaughtyPines
@420snoop, She's already got chops.
420snoop
@NaughtyPines, seems like she should tutor
NaughtyPines
@420snoop, Or run a little hedge fund. :-).
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