The market continues its tear higher today, giving us the opportunity to book some outstanding short-term profits.
Let’s close the Royal Caribbean (RCL) and Valero Energy (VLO) puts we opened in yesterday’s Live Trading Session.
We’ll book a 0.5% return on RCL in two days, or 99% on an annualized basis. And for VLO, we’ll earn 0.7% in two days, or 122% annualized.
RCL Feb Monthly (2/21) 115 Put
Current Stock Price: $119.19
Cash in Hand: $2.26
Action: Buy to close the RCL Feb Monthly (2/21) 115 Put for around $1.64, but adjust as needed to close today
Profit: $0.62, or $62 per contract
VLO Feb Week Two (2/14) 78 Put
Current Stock Price: $83.56
Cash in Hand: $0.90
Action: Buy to close the VLO Feb Week Two (2/14) 78 Put for around $0.38, but adjust as needed to close today
Profit: $0.52, or $52 per contract