We’re using our “Parachute Protection Plan” to close both our AMD and KSS put positions.
Semiconductor stocks have been weak as investors worry about a recession causing slowing demand. Meanwhile, KSS traded lower on disappointing guidance.
When stocks trade below our strike prices, risk for our income positions starts to rise.
To manage that risk, I prefer to close the position, take a step back, and then find new opportunities that are trading well in the current environment.
By closing these positions, we’re managing our risk and freeing up capital for new income positions with wider built-in safety buffers.
- Buy (to close) our AMD September 16th $95 Put
- Limit $9.70 or less
- 10:11 Executed
- Bot AMD September 16th $95 Put @ $9.70
- Buy (to close) our KSS September 16th $30 Puts
- Limit $2.90 or less
- 11:14 Executed
- Bot KSS September 16th $30 Puts @ $2.90