A few changes made today. First, we sold our long put in UBER. That leaves the 2 short puts “naked” through this Fridays expiration. One of those puts was already “naked” the other was covered by this long put. When the stock is trading around the long strike, we try to exit as early as possible in the trade. We will use this decline in the stock to do so. If the stock were around the short strikes, we would have tried to sit and remain patient.
Sell to close: UBER Dec 19th (monthly) 80.00 strike put
Credit: 1.15
Profit of $0.50 or +$50.00 per spread
Second, we sold a put to potentially buy 100 shares of CEG. This is a longer dated short put which gives us a lot of room between current stock price and the potential buy price. However, since it is a 250 strike, this has potential to buy $25,000 worth of stock. So, this is only a good strategy if willing to own that much stock of CEG.
Sell to open: CEG March 20th (monthly) 250.00 strike put
Credit: 3.40
Max risk = owning 100 shares at the 250 strike ($25,000 worth of stock)
Max reward = 3.40 or $340.00 per contract
Finally, we used this +$340.00 of income received to buy more shares of stock as follows:
Bought 2 shares of EQT at 54.00
Bought 2 shares of UBER at 76.64
Bought 1 share of PYPL at 62.17
Left with $16.55 left over