Decent Timing: Buying Puts At The Market Peak; Selling Puts During Peak Demand On Friday

Buying Puts At A Market Peak

Tim Knight noted yesterday that Bed Bath & Beyond, Inc. BBBY had ended its meme-run right at the market peak on August 16th.

It's absolutely poetic that the $BBBY insanity ended exactly at the MOMENT the market peaked on August 16th. It has collapsed 76% in the weeks since then.

— Slope of Hope with Tim Knight (@SlopeOfHope) September 24, 2022

As it happened, I bought puts on BBBY as well as another retailer, Five Below, Inc. FIVE and AMC Entertainment Holdings, Inc. AMC in my personal account on August 16th.

Bought puts on $AMC, $BBBY, and $FIVE in case he’s right. https://t.co/LGBIOlmBBd

— David Pinsen (@dpinsen) August 16, 2022

I sold the FIVE puts a couple of weeks later, but am still holding the AMC and BBBY puts.

Selling Puts On Friday

Friday apparently had the highest demand for puts ever.

More than 33 million puts traded on Friday, the highest single day of put volume since data began to be collected roughly 30 years ago. pic.twitter.com/4TiWOukd22

— Barchart (@Barchart) September 24, 2022

I didn’t know that at the time, but I took advantage of the market drop to sell puts on Peloton Interactive, Inc. PTON.

Sold $5 strike January puts on $PTON today.

— David Pinsen (@dpinsen) September 23, 2022

This was the second time I’ve sold $5 strike puts on Peloton: the first time, I received a credit equal to about 7% of strike value; this time, about 10%. For all of its management’s missteps, Peloton has millions of loyal users. I’ve referred three users myself, and collectively those three individuals have done more than a thousand workouts over the last year.

I’ve got 6 available referrals for this year. My 3 referrals from last year have collectively done over a 1,000 workouts since. It’s not a close hanger; you’ll use it. pic.twitter.com/NOzmLakcOo

— David Pinsen (@dpinsen) September 12, 2022