Closing our RUN put position to manage risk and free up capital.
As the market moves lower, shares of solar energy company Sunrun Inc. (RUN) have moved below our $32.50 strike price.
While alternative energy stocks will find support at some point — driven by spending from the “Inflation Recovery Act”, — the bear market is currently driving this position lower.
I’d prefer to close this position out now and wait for a better environment for RUN.
So today, we’ll use our “parachute protection” strategy to exit our RUN 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 RUN October 21st $32.50 Puts
- Limit $6.30 or less
- Executed 14:32
- BOT 2 RUN Oct 21 $32.50 Puts @ $6.00