Decent Timing

Energepic.com

Buying Puts At A Market Peak

Tim Knight noted yesterday that Bed Bath & Beyond, Inc. (BBBY) had ended its meme-run right at the market peak on August 16th.

As it happened, I bought puts on BBBY as well as another retailer, Five Below, Inc. (FIVE) and AMC Entertainment Holdings, Inc. (AMC) in my personal account on August 16th.

I sold the FIVE puts a couple of weeks later, but am still holding the AMC and BBBY puts.

Selling Puts On Friday

Friday apparently had the highest demand for puts ever.

I didn’t know that at the time, but I took advantage of the market drop to sell puts on Peloton Interactive, Inc. (PTON).

This was the second time I’ve sold $5 strike puts on Peloton: the first time, I received a credit equal to about 7% of strike value; this time, about 10%. For all of its management’s missteps, Peloton has millions of loyal users. I’ve referred three users myself, and collectively those three individuals have done more than a thousand workouts over the last year.

If You Want To Stay In Touch

You can follow Portfolio Armor on Twitter here, subscribe to our occasional email list here, download our hedging app here, or visit our website by clicking the image below.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: