Shares of NLCH have moved below our strike price as the broad market continues to sell off.
While travel spending has been holding up better than expected, we’re still in a bear market.
Which means protecting our capital is a very important part of our overall strategy.
With NCLH breaking down, we’re going to use our “parachute protection” approach to close out this income play ahead of next week’s expiration.
By closing this trade out early we’re taking a small 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 NCLH October 21st $12.50 Puts
- Limit $1.40 or less
- Executed 13:15
- BOT 4 NCLH Oct 21 $12.50 Puts @ $1.30