Hello Investors,
A couple of changes today. First, we exited the NVO put butterfly as it’s moving in the wrong direction. We were able to exit at around breakeven thanks to some benefits from vega (volatility).
Sell to close: NVO Dec 20th (monthly) 105.00 strike put (ratio of 1)
Buy to close: NVO Dec 20th (monthly) 95.00 strike put (ratio of 2)
Sell to close: NVO Dec 20th (monthly) 85.00 strike put (ratio of 1)
Credit: 2.26
Loss of -0.09 or -$9.00 per spread
Second, we entered into a new trade idea in PLTR. This is a seasonal trade idea and looks to take advantage of the “january effect”. If we see a relatively sideways stock price into year-end and then some selling in the new year, that would be ideal.
Buy to open: PLTR May 16th (monthly) 70.00 strike put
Sell to open: PLTR Dec 27th (weekly) 67.00 strike put
Debit: 8.78
Max risk = 8.78 or $878.00 per spread
Have a great week!