Sold ABNB and TLT Puts

I’ve been waiting for a good opportunity to sell a put to cover my short TLT shares and the recent dip I decided I should go ahead and take some more profit before it bounced again. While TLT was trading at $143.77, I sold one TLT November $140 covered put for $1.5 and received $149.38 after paying $0.62 in commission. I waited much longer than I thought I would to pull the trigger on this option, but I didn’t think TLT would stay above $150 for long and didn’t want to sell the put while premiums were so weak. Selling an extra naked call would’ve been good while TLT was up, but I didn’t get to it.

While I was in a trading mood for this account, I decided to get back into Airbnb since it’s off its highs from a couple weeks ago by more than $10. While ABNB was trading at $166.23, I sold one ABNB November $150 naked put for $4.36 and received $434.95 after paying $1.05 in commission. If ABNB doesn’t fall more than 10.09% by expiration, I’ll earn 2.98%, 23.15% annualized. ABNB can fall 12.69% further from the current level before I lose any money.

ABNB just fell below its 200-day moving average, which isn’t bullish, but I don’t expect it to fall more than 10% below this longer-term moving average. That sets up my strike as a reasonable area of support. Also, the 100-day moving average is a little above $150, which should act as further support if the stock makes it that low. I’ve drawn some trend lines marking the higher lows from the past few months and see potential support at today’s low and again close to $160 if it gets there by the end of the week. The 50-day moving average is close to this lower trend line, so it could add more support too.

I’d be happier if ABNB showed earnings, but I think they’ll get there sooner than later and I want to be in the stock when that happens, even if I have to be patient longer than I’d like.