Chewy (CHWY) is trading lower today, so we’re going to play it safe and close the position rather than sweat it out through expiration.

This is our fifth successful trade in a row on the online pet supply retailer this year, and I plan to continue trading the stock for the foreseeable future.

Current Stock Price: $56.29

Cash in Hand: $0.52

Action: Buy to close the CHWY Aug Monthly (8/21) 54.50 Put

Current Option Price: $0.08-$0.16

Recommended Limit: Set initial limit order at $0.12, but adjust as needed to close today

Profit: $0.40, or $40 per contract

Rate of Return: 0.7% in four days, or 67% on an annualized basis