Selling our EXPE call contracts.
Shares of EXPE broke below the 50-day moving average today on concerns over a new coronavirus variant. While this concern is likely to be short-lived, I’d like to manage our risk by closing out of this position now and then watching for a new opportunity to profit from the travel and leisure area.
Fortunately, our in-the-money option strategy has helped keep losses manageable with this position. Our contracts still have $12.50 or so of time premium embedded in the price even though the stock has pulled back to our $180 strike price.
- Selling (to close) our EXPE May 20th $180 Calls
- Limit $12.00 or more
- 14:23 Executed
- Sold EXPE May 20th $180 Calls @ $13.10