We made a few changes to the portfolio.
We bought back our short puts in PYPL to lock in profits. With ongoing uncertainty around overall market volatility, we felt it was prudent to reduce exposure at this time.
Buy to close: PYPL April 17th (monthly) 42.50 strike puts
Debit: 0.11
These were sold for 1.16 each, the profit overall is +$210.00 (2 contracts)
We have a pending exit order in place for our BIIB put butterfly, set as a good-til-canceled (GTC) order. If the stock begins to gap sharply lower at any point, we’ll want to actively adjust the order price to maximize our potential return. Be sure to monitor this position closely in the pre-market. For the current target to be achieved, we need BIIB to trade down into the high $160s per share.
Sell to close: BIIB April 17th (monthly) 170.00 strike put (ratio of 1)
Buy to close: BIIB April 17th (monthly) 150.00 strike put (ratio of 2)
Sell to close: BIIB April 17th (monthly) 130.00 strike put (ratio of 1)
Credit: 2.85
GTC – Good Til Canceled Order (however, this price will need to be adjusted if the stock is ever gapping sharply lower next week so check it pre-market)
We’ve initiated a low-risk call butterfly in Ares Management (ARES), a major player in the private credit space. While there are mixed opinions about the risks in this sector, firms like ARES benefit from fee-based revenue tied to assets under management, creating a more stable and recurring income stream despite market fluctuations. We also favor ARES’s relative strength compared to peers like OWL, where underlying stress appears higher. This trade is a tactical play on a potential bounce, using a defined-risk butterfly structure. If the stock moves higher and volatility expands, we’ll look to take profits accordingly.
Buy to open: ARES July 17th (monthly) 110.00 strike call (ratio of 1)
Sell to open: ARES July 17th (monthly) 130.00 strike call (ratio of 2)
Buy to open: ARES July 17th (monthly) 150.00 strike call (ratio of 1)
Debit: 3.00 – Please note that bid/ask spreads are wide, but an execution around the 3.00 price is both available and ideal.
Max risk = 3.00 or $300.00 per spread
Max reward = 17.00 or $1,700.00 per spread