Rolling our SHOP put contract to a higher strike price.
SHOP has bounced a bit from when we initially bought our put contracts. But the speculative e-commerce stock still looks extremely vulnerable — especially if the broad market sells off.
Rolling our put contract lets us buy more intrinsic value at a discount, and sets us up for better profits when SHOP trades lower. Plus, having a bearish position for SHOP helps to balance our exposure with plenty of bullish positions already in play.
- Selling (to close) the SHOP July 15th $400 Puts
- Buying (to open) the SHOP July 15th $430 Puts
- Limit: DEBIT of $19.50 or less
- The new position will represent roughly 11.5% of our Spec Model capital
- 14:04 Executed
- Sold SHOP July 15th $400 Puts @ $44.78
- Bot SHOP July 15th $430 Puts @ $63.18
- net Debit: $18.40