Trade Log: Closing NBIS May 16 $20 Put – $165 Profit in 10 Days
The open short put position on NBIS was closed in a $100,000 account by buying back the May 16 $20 put for $35, locking in a total profit of $165 over a 10-day holding period.
Trade Summary:
- Underlying Asset: NBIS
- Final Position Closed: May 16, 2025, $20 Put
- Buyback Price: $35
- Total Premium Collected: $200
- Net Profit: $165
- Holding Period: 10 days
- Account Size: $100,000
Rationale for Closure:
The position reached a favorable profit level well ahead of expiration. With limited premium left and minimal upside remaining, the position was closed to realize gains and reduce exposure.
Key advantages of this exit:
- Strong ROI: A $165 gain over 10 days represents a solid return on the capital tied to a $2,000 notional position.
- Time-Efficient Trade: Quickly captured most of the available premium with low risk.
- Freeing Up Capital: Early exit allows redeployment of capital into new high-probability setups.
Outcome:
- No Assignment Risk: The option was closed well before expiration.
- Efficient Management: Profit was taken proactively rather than risking late expiration volatility.
Conclusion:
This trade highlights how short-duration put selling can yield strong, efficient returns when managed actively. By exiting early, the position avoided downside risk while achieving a favorable outcome.
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