This is our 2nd newsletter today!
We are closing the 1×2 Put Spread in ABNB and using the profit to buy 1 share of the stock. This stock has performed much the way we had expected. However, it is hanging out near our long put strike price. That means that we are in danger of having a max loss if it stays here or goes higher (2 of 3 directions). We would be in great shape if it were to fall sharply but there is less time. We are taking profits and if the market falls further, our SPY hedge will capture it.
Sell to close: ABNB Nov 21st (monthly) 120.00 strike put (ratio of 1)
Buy to close: ABNB Nov 21st (monthly) 105.00 strike put (ratio of 2)
Credit: 2.89
This locks-in a profit of +$121.00 per spread. We bought 1 share of ABNB at 120.72 per share.