I closed two short puts today to free up some cash for what I hope to find in a better opportunity. I began with my DIS put that I reference in my YouTube video at the end of last week. While DIS was trading at $102.65, I bought to close one DIS August $105 naked put for $2.55 and paid $255.67 including $0.67 in commission. This trade gave me a realized gain of $3.65 (yes, the decimal is in the right place) while DIS fell more than $3.50 from where it was when I opened the trade.
A few hours later, I moved my focus to WMT. While WMT was trading at $80.73, I bought to close my WMT August $75 naked put for $0.12 and paid $13.09 including $1.09 in commission. I could’ve let this option expire this week and saved the $13, but opted to remove the risk completely. Closing the WMT option earned a $211.23 realized gain for me. I’ll probably sell another WMT naked put, but want to see how the stock behaves over the next day or two before jumping back in at a higher strike.
You can find my trade video here on YouTube.