A couple of changes to the portfolio today.
Exited our PLTR call butterfly as it moved up above the “inverse cup and handle” zone. While it is still in a bear rally short setup. The probability of it moving to our ideal zone has taken a hit. We will take a small loss.
Sell to close: PLTR Jan 16th (monthly) 165.00 strike put (ratio of 1)
Buy to close: PLTR Jan 16th (monthly) 145.00 strike put (ratio of 2)
Sell to close: PLTR Jan 16th (monthly) 125.00 strike put (ratio of 1)
Credit: 3.25
Result is a loss of -0.60 or -$60.00
We have added a 1×2 put spread to the long put we own in SPY. This is only ideal if you own the long puts already.
Buy to open: SPY Dec 5th (weekly) 680.00 strike put (ratio of 1)
Sell to open: SPY Dec 5th (weekly) 670.00 strike put (ratio of 2)
Debit: 1.12
Max risk = 1.12 or $112.00 per spread
Max reward = 8.88 or $888.00 per spread
Since we are doing it with our long Dec 19th put, this is not a “naked” trade.