We’re using our “Parachute Protection Plan” to close both our DAL and WYNN put positions.
Both DAL and WYNN traded sharply lower this week as the broad stock market entered correction territory. And while both of these travel & leisure companies should ultimately be just fine, it makes sense to close out our positions today and watch for better entry points with less risk.
Today, the stocks started to move higher which helps us in two ways. The higher stock price makes the value of our promise to buy shares a little less expensive. And the lower volatility (compared to yesterday) also helps us to exit for a more reasonable price.
By closing these positions, we’re managing our risk and freeing up capital for new income positions with wider built-in safety buffers.
- Buy (to close) our DAL April 14th $37 Puts
- Limit $6.20 or less
- 15:48 No execution
- Adjusting limit price to $6.50
- 16:00 No Execution
- Will revisit tomorrow.
- Buy (to close) our WYNN March 18th $85 Put
- Limit $12.50 or less
- 15:48 No Execution
- Adjusting limit price to $13.80
- 15:55 Executed
- Bot WYNN March 18th $85 Put @ $13.50