Closing our YETI put position to manage risk and free up capital.
As the market turns lower, shares of YETI have broken below our $45 strike price.
While YETI is a high-quality stock, investors are losing confidence in the U.S. consumer. I expect the company to do just fine, but it could be some time before the stock starts to rebound.
Given the weakness in the overall market, we’ll use our “parachute protection plan” to buy out of our agreement for YETI stock.
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 2 YETI September 16th $45 Puts
- Limit $4.90 or less
- 10:15 Executed
- Bot 2 YETI September 16th $45 Puts @ $4.78