Decent Timing

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.

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