This worked out great. NKE gapped up a bit more than expected but the IV stayed strong and we walked with a nice overall profit.
A solid trade with NKE ending up right in the range we wanted. Over the last few days, the theta erosion has been strongly in our favor giving us extra profits as we come into the expiration.
NKE has been in a steady but relatively slow trend up for the last few months. I expect this to continue for the next few weeks, but I am concerned we may have a bit of a pullback.
This trade is designed to make money from the slow progression towards the 56 strike and at the same time limit our losses if NKE suddenly pulls back.
NKE has hit its bottom and is now heading back up. This is a strong company that took a price hit over the last several months. Room to go up further and we will take advantage of that with a Bull Put Spread.
Nailed our target just as the market closed. There is a very good chance there will be even more profit tomorrow in the morning.
NKE made a nice drop right onto our target strike. It seems to be trending further down so I am grabbing the profit right now. Theta erosion would help us make more over next few days but balancing that against the risk of losing some profit doesn't make sense.
Let's put this one in the bank.