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NaughtyPines
Feb 4, 2020 3:59 PM

OPENING: SNAP MARCH 20TH 18 SHORT PUT Long

Snap Inc.NYSE

Description

... for a 1.18 credit.

Notes: A "Wheel of Fortune" short put. Run to expiry, either keep the premium or be assigned stock with a cost basis of 16.82, after which you proceed to cover.

Trade active

Selling the 19C against for .49; scratch at 1.67; cost basis of 16.33 if assigned on the 18 shorties.

Trade active

Rolling the skinny March 18/19 short strangle to the April 17th inverted 17C/18P for a .39 credit; scratch at 2.06.

Trade active

Pulling the approaching worthless 17C off for .02, with a resulting scratch point of 2.04 and a cost basis of 15.96 if shares assigned via the 18 short put, so selling the May 16's against for .26 in preparation for assignment/covering. Cost basis in the resulting shares will be 15.70.

Trade active

Price finished below the short put strike, so will be assigned shares with a cost basis of 15.70 and currently covered by the May 16's.

Trade active

Late Post: Rolled the May 16's to June on this strength for a .50/contract credit, resulting in a cost basis of 15.20/share, .80 ($80) max profit if called away at 16. Will look at strike improvement toward expiry and/or roll "as is" for additional credit cost/basis reduction.

Trade active

Rolled "as is" with 24 DTE to August for a .98/contract credit; cost basis of 14.22. Went with August over July due to August IV being 66.3% vs. July's 55.3%. Will look to take this off running into expiry at or near max, assuming it stays above $16.

Trade closed manually

With only .25 or so between here and max and with 59 days to go, taking profit here at 15.69; 1.47 ($147) profit.
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