Options Expiration – July 2021

The only July option I had coming into today was one ABNB July $135 naked put. This contract was the last option I sold back in June. ABNB was trading at $147.92 when I made my opening trade last month and today, I closed it for a profit after ABNB fell more than $14.00 over the past five weeks. ABNB had a rough day today and until this afternoon I thought I would take a full profit, but I had to close my position with just over 5 minutes left in the trading day. While ABNB was trading at $134.33 I bought to close one ABNB July $135 naked put for $75.63, including $0.63 in commission. This trade gave me a realized gain of $204.74 on an option of an underlying stock that has performed very poorly. The good news is, my charting was very accurate to predict its range, so I’m glad I made a profit even if it wasn’t a full profit.

I thought about selling a new contract for September, but it seems too risky to chase when it’s falling so fast. There’s no need to catch a falling knife. I know it will bounce back at some point and I will continue to watch it to look for clues of a new bottom. Until then, I’m glad to have a decent amount in cash now that the market looks shaky. I expect this to be a short-term mini-correction and a good buying opportunity probably fairly soon.

I haven’t traded in the past few weeks because I had another back surgery three weeks ago and I haven’t recovered the full use of my right hand yet. So, my only desk time has been focused on my clients’ accounts.