This morning an open limit order repurchased our short position in a put on CrowdStrike (CRWD) shares for $10. On Friday, August 7th, we sold, for $250, a contract to purchase 100 shares of CRWD at $95 if the market price fell below that strike price before September 4th. To summarize, we our $9,500 exposure to CRWD lasted for about 3.5 weeks and were paid $240, before commissions and taxes, which is roughly a 37.5% annualized return.
CRWD is a great prospect, recommended by the Motley Fool. The cybersecurity firm has performed very well over the past few months and the volatility has allowed us to profit. For three and a half July weeks, exposure to a similar put on CRWD earned roughly $155 (25.5% annualized return) for our portfolio.
Today, CRWD has gapped up almost 10% ($138 per share) and we will continue to use short put contracts to either generate income or back-into positions.