Today we prepared for options expiration Friday this week. Our main point of emphasis being INTC and CCJ. Both of those positions have July expiration options that have at least a decent chance of finishing ITM (in the money). We discussed ideal outcomes, probability and risk/reward.
We also exited a part of our CCJ 1×2 put position and took some profits. We felt that the risk/reward/probability mix favored doing so. The details are as follows:
Sold to close: CCJ July 19th (monthly) 55.00 strike put (ratio of 1)
Buy to close: CCJ July 19th (monthly) 50.00 strike put (ratio of 1)
Credit: 2.40 – this order filled
This locks-in a profit of +$140.00 on the 1×2 put spread. However, it does leave the other 50 strike put “naked” through this week.
Have a great week!