Closing BOTH our BABA and JD put positions to lock in profits and free up capital for new plays.
Shares of both Chinese companies have moved sharply higher as covid lockdowns are eased and policymakers start to adopt more pro-business positions.
As both stock prices move higher, prices for our put contracts have declined.
That’s good news, because it means there’s less of a likelihood we will be obligated to buy shares. And we’re now able to buy out of our promise at a lower price (keeping more income in our account).
Today we’ll close out both positions early, locking in a large portion of our potential gains from each trade and freeing up cash that we can use for new opportunities. We will keep both names on our watch list, and may roll out new income plays in the future.
- Buy (to close) our BABA July 15th $85 Put
- Limit $1.00 or less
- 12:45 Executed
- Bot BABA July 15th $85 Put @ $0.99
- Buy (to close) our JD July 15th $52.50 Put
- Limit $0.90 or less
- 12:46 Executed
- Bot JD July 15th $52.50 Put @ $0.88