Tuesday, April 28, 2020

New Trades

The following Cash Secured Put (CSP) positions were established today. All prices include IB commissions.

StockPriceOptStrikeOTMDeltaProbOTMExpDateDaysInvestedPremiumROIAROI
XLK $88.81 P $76.00 -14.42% 7 93% 5/15/2020 17$7,600.00 $33.90 0.45% 9.58%
XLP $59.43 P $56.50 -4.93% 17 83% 5/15/2020 17$5,650.00 $30.27 0.54% 11.50%
XLU $59.66 P $55.00 -7.81% 14 86% 5/15/2020 17$5,500.00 $32.90 0.60% 12.84%
XLV $99.87 P $92.00 -7.88% 12 88% 5/15/2020 17$9,200.00 $40.90 0.44% 9.55%

With the market unstable due to COVID-19, I've decided to look at the S&P sector ETF's for opportunities, rather than my usual dividend stocks. I'm a bit hesitant to jump into any individual stocks at this moment, so these ETF's provide a good alternative. Checking the Sector Tracker I see that the following sectors have faired pretty well during this downturn, so I established CSP's in all 4.

  • Consumer Staples (XLP)
  • Health Care (XLV)
  • Technology (XLK)
  • Utilities (XLU)