Hello Investors,
We increased our buy price for the longer dated SPY put butterfly. We bumped it up to 4.90 debit and it remains a good ’til canceled order.
Buy to open: SPY Jan 15th, 2021 (monthly) 220.00 strike puts (ratio of 1)
Sell to open: SPY Jan 15th, 2021 (monthly) 170.00 strike puts (ratio of 2)
Buy to open: SPY Jan 15th, 2021 (monthly) 120.00 strike puts (ratio of 1)
Limit debit: 4.90
Max risk = 4.90
Max reward = 45.10
As detailed yesterday, although it is a low probability trade it makes for a nice hedge.
We also bought bought back 1 of the short DELL May 15th (monthly) 35.00 strike puts. That will convert our 1×2 put spread (1 leg naked) into a bear put spread for protection. We will be looking to sell another put down the road for income.
In addition, we started a new small position by buying 5 shares of Target (TGT) at 104.43. We were impressed by the earnings overall. They are competing online and in food delivery which will continue to be a growing trend overall.
Have a nice weekend!