Rocket Update 11-17-20
Still holding all options earnings positions today
WMT traded lower into the open so I am not willing to close out our trade right now at the current price level. We achieve a max profit if WMT closes the week above $147. It's currently trading at around $150. We would have to pay about $0.18 right now to close out this trade so it would barely be a profit. I like the risk vs. reward that is similar to when we first put this trade on, we are risking about $1 to make $4, and I like those probabilities for WMT closing above $147 on Friday. If WMT trades higher and we can exit this trade for $0.02 or $0.03 then we will go for it, but otherwise we will hold for now.
HD is trading lower and is approaching the levels we could close the trade. Right now it would cost us about $0.10 per contract pair to close out this trade, yet there is very little chance HD closes the week above $285. HD is trading at $272.26. I'm not willing to give up the final $0.10 in profit, even if it means risking $2.40. I don't think HD closes above $285 1 out of 25 times; I think it would be far less. I have an order in to close this trade at $0.02. If we don't get executed then we'll just hold it for now.
KSS is trading higher at $26.49 - make sure you have your order in to close our bull call spread at $1.16 as it has a chance of being hit if KSS continues higher today. KSS would have to reach about $27.50 to get executed.
HD is trading lower and is approaching the levels we could close the trade. Right now it would cost us about $0.10 per contract pair to close out this trade, yet there is very little chance HD closes the week above $285. HD is trading at $272.26. I'm not willing to give up the final $0.10 in profit, even if it means risking $2.40. I don't think HD closes above $285 1 out of 25 times; I think it would be far less. I have an order in to close this trade at $0.02. If we don't get executed then we'll just hold it for now.
KSS is trading higher at $26.49 - make sure you have your order in to close our bull call spread at $1.16 as it has a chance of being hit if KSS continues higher today. KSS would have to reach about $27.50 to get executed.