Closing our CPRI put position to manage risk and free up capital.
The broad market is trading lower as investors worry about rising interest rates and the threat of recession.
Shares of CPRI moved below our $47.50 strike price and have broken the 50-day moving average. This should have been an area of support.
The stock looks vulnerable and may sell off more if the overall market continues to slide.
Today, we’ll use our “parachute protection” strategy to exit our position before shares move 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 CPRI September 16th $47.50 Put
• Limit $2.90 or less
• 10:49 Executed
• BOT 2 CPRI Sept 16th $47.50 puts @ $2.55