Closing our APA put position to manage risk and free up capital.
The broad market continues to trade lower and momentum is picking up.
Fortunately, we have a relatively large cash balance and each of our positions started with a safety buffer.
But as stocks break down and some move below our strike prices, it makes sense to close out positions methodically to manage our risk.
We can then assess the situation and roll out NEW income plays over time with new safety buffers built in.
Today, we’ll use our “parachute protection” strategy to exit our APA 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 APA October 21st $35 Put
- Limit $4.30 or less
- Executed 13:47
- BOT 2 APA Oct 21 $35 Puts @ $4.15