Follow me on Twitter!

Showing posts with label KMB Oct 21 2022 $120 put. Show all posts
Showing posts with label KMB Oct 21 2022 $120 put. Show all posts

Wednesday, November 2, 2022

Options trading : Kimberly Clark (KMB) semi-bullish trade

  GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.



8/29/2022

sell -1 Oct 21, 2022 $120 put at $1.30 (credit)



10/21/2022 (exp)  🠈🠈  ROLL 
Why Roll?
  • KMB dropped to $113.96 (my put was ITM)
  • my friend did not want to get assigned
  • my friend wanted to collect another credit

Here's the roll:
buy (to close) the Oct 21, 2022 $120 put at $6.35 (debit)
sell (to open) a Nov 18, 2022 $120 put at $7.15 (credit)

Roll for a net credit of $0.80

Credits collected so far:  $1.30 + $0.80 =  $2.10


Translation:
If I buy back the Nov 18 put at $2.10, I will break even.
If I buy back the Nov 18 put for less than $2.10, I will have a profit.



10/31/2022 (12:26 pm, PT) 🠈🠈  18 DTE

buy back the Nov 18 $120 put at $0.80 (debit) and take profits


Reasons for closing the trade:
  • KMB was "overbought" again
  • I was able to buy back the short put for less than $2.10
  • take profits