Closing our NLCH put position to manage risk and free up capital.
Consumer discretionary stocks have been under pressure as investors worry that high inflation may lead to less spending on travel.
While my long-term view is that travel will continue to be a profitable area of the economy, shares of NCLH have broken below recent lows. So today we’ll use our parachute protection plan to buy back our put contracts and close out our promise to purchase shares of NCLH.
We can revisit the stock later and potentially set up a new income play once the stock is back in favor with investors.
By closing this trade out early we’re taking a loss. But we’re also managing our risk and freeing up capital that can be used for new income plays that are currently working well.
- Buy (to close) our NCLH June 17th $15 Puts
- Limit $2.35 or less
- 15:09 Executed
- Bot NCLH Jun 17th $15 Puts @ $2.25