We closed our put on The Trade Desk (TTD) to avoid earnings risk. The company reported better-than-expected quarterly revenue and earnings. The report reinforces the company’s clear leadership position in the advertising and marketing industry. After an initial sell-off, shares reversed higher.
I am recommending we take advantage of post-earnings volatility by selling a silly put on the stock. The income we generate will reduce our net debit on the position. However, you can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $46.39
Net Debit: $5.46
Action: Sell to open the TTD May Monthly (5/20) 40 Put for around $1.19, but adjust as needed to sell a put today
New Net Debit $4.27