Airbnb (ABNB) sold off after we entered the position, despite the company recently reporting a 20% year-over-year increase in quarterly revenue and record bookings. Shares hit a low of $103.55 earlier this week, and while they have bounced back some, our put remains in the money.
We can roll out two weeks and to a lower strike while still picking up some cash. This will allow us to avoid assignment and reduce our risk.
I expect shares to bounce higher on any market strength, potentially allowing us to exit the position early.
Current Stock Price: $106.67
Cash in Hand: $1.09
- Buy to close the ABNB May Monthly (5/19) 108 Put for around $2.10
- Sell to open the ABNB Jun Week One (6/2) 105 Put for around $2.41
- Set initial credit limit at $0.31, but adjust as needed to roll today
New Cash in Hand: $1.40