We’re using our “Parachute Protection Plan” to close both our DAL and RCL put positions.
Both DAL and RCL 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, both stocks are rebounding 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 Monday) 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 $5.00 or less
~~~~~~~ - 10:50 Executed
- Bot DAL Apr 14th $37 Puts @ $4.85
ALSO
- Buy (to close) our RCL March 18th $80 Put
- Limit $12.00 or less
~~~~~~~~ - 10:50 Executed
- Bot RL Mar 18th $80 Put @ $11.81