Today I closed a position in an put option contract for Lemonade (LMND), the newly public, high-tech powered, property-casualty insurance company. I initiated the short position in the put contract (strike: $70; expiration: 31DEC2020) yesterday when LMND shares sold off. Today, our limit order to close the position was triggered. We netted $118.61 in just a day or 1.7% of the capital used for collateral.
Yesterday we closed another short position in a put contract for Chewy (CHWY) (strike: $55; expiration: 31DEC2020). I had planned to let this contract expire, but we closed the put contract for just $5.69 – netting $98.61 over the 17 days the position was open. The return was 1.8% on the $5,500 collateral or 38.5% annualized.