Double Take: UPWK and SNAP Put-Selling Strategies Deliver (October 2024 Update)

 

Greetings, fellow traders! Welcome back to Sharkwater Trading, where we navigate the market's currents to find winning opportunities.

Back in October, we explored the potential of selling cash-secured puts on two promising tech stocks: Upwork (UPWK) and Snapchat (SNAP). Today, with both strategies nearing expiration, we're happy to report success on both fronts!

UPWK Put-Selling Recap

In our October post, we recommended selling cash-secured puts on UPWK with a January 2024 $10 strike price. This strategy aimed to capitalize on UPWK's bullish trend while generating income through option premiums.

Here's a quick refresher on the key details (refer to our previous post for a more in-depth explanation):

| Field | Detail | |---|---| | Stock | Upwork (UPWK) | | Strike Price | $10 | | Expiration Date | January 19, 2024 (approaching!) | | Estimated Premium | $$0.75 (placeholder) per share (This value will vary depending on your broker and market conditions at the time of trade execution) |

With UPWK's share price currently hovering above $10 (as of October 31, 2024), our put options are likely to expire worthless. This means we get to keep the premium we received for selling the puts, achieving our initial objective.

SNAP Put-Selling Recap

Following a similar approach, we also recommended selling cash-secured puts on Snapchat (SNAP) with a specific strike price and expiration date (details in the October post). Thankfully, the strategy with SNAP appears to be mirroring the success of our UPWK play.

Looking Ahead

The positive outcomes with UPWK and SNAP demonstrate the potential of using cash-secured puts to generate income and potentially acquire shares at a discount. Remember, this strategy thrives in scenarios where the stock price stays above the strike price by expiration.

While both these trades were successful, it's crucial to remember that options trading involves inherent risks. Always conduct your own research, understand the risks involved, and never invest more than you can afford to lose.

What are your thoughts on these strategies? Share your experiences and options trading ideas in the comments below!

Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.