Follow-up analysis $HD position

12 de mai. de 2021

HD

One thing I do different about this specific option strategy is the trade analysis that I do for trade management. This would determine if I exit early at half of the debit or see it to expiration and risk full loss.

Initial trade set up triggered entry 04/21 Debit Put Spread $300/325 14 May 21 expiry. Price needs to be below $325 at expiration for this trade. Since Price is showing weakness and overextension. Holding this spread 'til expiration.

15 de mai. de 2021

Trade fechado manualmente

Looks like price followed through and today's close is below $325!

I was able to close this for a profit and get 60% ROI (instead of the 94% ROI with original target). I did lower my limit order for target closer to nat price to reduce the risk of not getting filled.