Whirlpool Corp Stock (WHR)
This is another stock that was discussed in the morning Investing Strategy Notes for today. I did 5 trades today. Make sure to understand the risks of these trades. I could be wrong in my outlook.
The drop in the stock I think is an opportunity. Earnings were stellar and next quarter should be terrific. Just to remind again make sure you understand the risk associated with these trades. I would own shares if I had no opportunity to repair or roll these trades.
Trade 1:
I had planned to sell the $210. I moved to the $207.50 as I would own shares there for a bounce back, if assigned.
Sold 4 put contracts for Jul 30 expiry at the $207.50 put strike for $2.965 (average) and holding the $195 put for 34 cents to form a $12.50 credit put spread returning 21% if held to expiry.
I am offering to buy to close early for 70 cents which will be reduced as the trade moves to expiry.
Trade 2:
Sold 4 put contracts for Jul 30 expiry at the $205 put strike for $2.00 and holding the $195 put for 34 cents to form a $10 credit put spread returning 16.6% if held to expiry.
I am offering to buy to close early for 60 cents which will be reduced as the trade moves to expiry.
Trade 3:
Sold 2 put contracts for Jul 30 expiry at the $202.50 put strike for $1.575 (average) and holding the $195 put for 34 cents to form a $7.50 credit put spread returning 16.4% if held to expiry.
Trade 4:
Bought 10 put contracts for July 30 expiry at the $195 put strike for $0.34 to turn all the above trades into credit put spreads.
Trade 5:
Sold 6 put contracts for Aug 20 expiry at the $190 put strike for $1.15 and I am offering to buy the $170 put strike for 15 cents to form a $20 credit put spread returning 5% if held to expiry and once the long puts are filled.
I am offering to buy to close early for 50 cents which will be reduced as the trade moves to expiry.
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. The author assumes no liability for your investment decisions. Read the full disclaimer.