No, I'm not talking about a lousy minty coffee beverage...
Today's trading had 2 moves. I opened a NEW bull put spread on SBUX thanks to the earnings report bringing the stock down 2%. They are doing better but didn't quite meet all the expectations.
I already have another spread on Starbucks that I opened in August and will be closing soon as it expires in November.
My new position is a $70/67.50 bull put spread which got me a credit of $0.504 per contract.
In other news, I CLOSED a spread on CL (Colgate Palmolive). Cost me a whopping $0.09 to close. It was open for 78 days when it hit my target capture of 75%.
The numbers on the CL spread aren't all that exciting. I only made 6% on the risked capital. But since it was only open for 78 days, it's theoretically a 28% annualized return.
No big numbers here, just small incremental gains month after month after month. And not just paper gains. These positions expire and leave you with nothing buy cash rather than just a bigger paper-value.
Here's the trade window for the day so you can see my costs.
NB: the "bear put" as listed above is the opposite of the bull put. So It's what I have to do to CLOSE the position. So I BUY a bear-put to CLOSE the bull-put. (Each portion of the spread can be closed separately if desired)
Stay HUNGRY my friends!