Disclaimer:The trades discussed in this blog reflect the author's personal strategies and decisions. These are not financial advice and should not be considered recommendations to buy, sell, or hold any financial instruments. The author is not a licensed financial advisor. Options trading carries significant risk, and readers should perform their own research or consult a qualified financial advisor before making any investment decisions. Past performance does not guarantee future results.
I opened a short put position on BKNG today. The stock is widely oversold so I'm ok with either getting assigned shares (and do a wheel with a covered call) or rolling this down and further in time a few times. But since BKNG is quite expensive, I'll probably aim for rolling.
The Trade
Here is the trade (IV rank is above 90%, and the stock has seen significant selling pressure with RSI deeply in oversold territory):
Here is the stock chart, for reference:
As always, I have added this trade in my trade log.
Update - Trade Closed
Closed the trade at a small positive return. I was on my way to reach full profit up until when the US-Iran tensions escalated.
Remaining invested in a company relying on tourism with high geopolitical tensiosn is not ideal, it's better to take a small profit home than wait for a large loss later.
Gianluca Longinotti is an experienced trader, advisor, and financial analyst with over a decade of professional experience in the banking sector, trading, and investment services.
Gianluca LonginottiFinance Writer - Traders Education