The short put position in a $100K account on Hims & Hers Health, Inc. (HIMS) was closed by buying back the May 16 $35 put for $210, locking in a total profit of $215.
Trade Outcome:
- Option Closed: May 2, 2025
- Strike Price: $35
- Buyback Price: $210
- Initial Premium Collected: $425
- Net Profit: $215
- Holding Period: 3 day
- Account Size: $100,000
Rationale for Early Exit:
The trade achieved over 50% of its potential profit in just one day, offering a high return relative to the risk and time in the trade. With volatility contracting and little premium left to capture, the position was exited to lock in gains and reduce exposure.
🔗 Opening Trade Reference:
Sell HIMS May 16 $35 Put for $425 Credit
Key Takeaways:
- Quick Return: High premium decay in just 24 hours allowed for a fast and efficient exit.
- Risk Managed: Avoided the uncertainty of holding through potential market swings.
- Capital Efficiency: Freed up margin for new income-generating opportunities.
This trade is another example of how disciplined options selling combined with opportunistic profit-taking can produce consistent results.
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