Closing our JWN put position to manage risk and free up capital.
JWN issued disappointing guidance when the company reported quarterly earnings.
Nordstrom cut full-year forecasts citing slowing customer demand. This sent the stock sharply lower.
Often a sharp drop like this will lead to a relief rally as value investors step in and buy shares at a discount.
But JWN has not bounced, and now the overall market is weakening.
At this point it makes sense to close our position before the stock moves any lower.
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 3 JWN October 21st $22.50 Puts
- Limit $5.00 or less
- 11:20 Executed
- Bot 3 JWN October 21st $22.50 Puts @ $4.95