Closing our ETSY 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 ETSY moved below our $100 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 ETSY October 21st $100 Put
- Limit $8.30 or less
- Executed 10:17
- BOT 1 ETSY Oct 21 $100 Put @ $7.64