Hi Fellow Traders and Investors,
This afternoon I was getting ready to close up shop for this week and noticed a big selloff in the price of ULTA after earnings were released. In my opinion, this selloff is overdone especially based on ULTA results for last quarter and the fact that we are coming into the holiday season.
Therefore I decided to sell the $190 puts on ULTA at 10:20 AM PST which expire next week on 8 Dec 2017. I picked the $190 strike because of previous support around this price as shown below on the daily chart of ULTA.
This is a very short term trade of only 1 week, with the risk of having ULTA shares put to me if price is below $190, which is acceptable to be. I have no problem with owning ULTA, especially when I can sell calls after ULTA is put to me. Another win-win situation if you ask me.
Therefore I sold ULTA puts this afternoon and hope to generate $100+ next Friday on each put sold.
Please do your own research if you too are thinking about selling puts on UTLA.
Good Luck, Trader_Joe
This afternoon I was getting ready to close up shop for this week and noticed a big selloff in the price of ULTA after earnings were released. In my opinion, this selloff is overdone especially based on ULTA results for last quarter and the fact that we are coming into the holiday season.
Therefore I decided to sell the $190 puts on ULTA at 10:20 AM PST which expire next week on 8 Dec 2017. I picked the $190 strike because of previous support around this price as shown below on the daily chart of ULTA.
This is a very short term trade of only 1 week, with the risk of having ULTA shares put to me if price is below $190, which is acceptable to be. I have no problem with owning ULTA, especially when I can sell calls after ULTA is put to me. Another win-win situation if you ask me.
Therefore I sold ULTA puts this afternoon and hope to generate $100+ next Friday on each put sold.
Please do your own research if you too are thinking about selling puts on UTLA.
Good Luck, Trader_Joe
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