The Trade Closure at a Glance
- Underlying Stock: Intel Corp. ($INTC)
- Strategy: Buy to Close Cash-Secured Put
- Expiration: March 21
- Strike Price: $25
- Original Premium Received: $390
- Buy to Close Price: $180
- Total Profit: $210
Why Close This Trade?
Locking in Profits
By closing the position early, we secure a $210 profit, reducing exposure to future price movements.
Capital Reallocation
Closing this position frees up $2,500 in margin, allowing capital to be deployed for new opportunities.
Risk Reduction
Avoiding potential downside as expiration nears, eliminating the obligation to buy $INTC at $25.
Trade Performance
- Initial Setup: Sold 1 Cash-Secured Put at $3.90 premium
- Exit Price: Bought to Close at $1.80
- Holding Period: A few weeks before expiration
- Profit Realized: $210, a 53.8% return on risked capital ($390 – $180)
Final Thoughts
Closing winning trades before expiration is a disciplined approach to securing gains and managing risk. This $INTC put trade successfully generated income, and by closing early, we ensure a profitable outcome without unnecessary risk.
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Disclaimer: This post is for educational purposes only. Past performance isn’t indicative of future results. Options trading carries significant risk.
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