The market is rebounding after a few ugly days, providing us with a great opportunity to book profits on our Chewy (CHWY) and Corning (GLW) puts.
In addition to the uncertainty in the broader market, CHWY is expected to report earnings tomorrow, making closing now a no-brainer.
And while we just opened the GLW position yesterday, there’s simply too much cash on the table not to close it early. We’ll be earning a stellar rate of return by doing so.
CHWY Sep Week Two (9/11) 50 Put
Current Stock Price: $63.05
Cash in Hand: $1.07
Action: Buy to close the CHWY Sep Week Two (9/11) 50 Put
Current Option Price: $0.27-$0.33
Recommended Limit: Set your initial limit order at $0.30, but adjust as needed to close today
Profit: $0.77, or $77 per contract
Rate of Return: 1.5% in 16 days, or 35% on an annualized basis
GLW Sep Monthly (9/18) 31.50 Put
Current Stock Price: $33.53
Cash in Hand: $0.61
Action: Buy to close the GLW Sep Monthly (9/18) 31.50 Put
Current Option Price: $0.17-$0.22
Recommended Limit: Set your initial limit order at $0.20, but adjust as needed to close today
Profit: $0.41, or $41 per contract
Rate of Return: 1.3% in two days, or 238% on an annualized basis