Yesterday two of our put option contracts closed on standing limit orders. Today another put option closed. We’ve avoided the steamroller again but must be vigilant of its presence.
Our Emergent BioSolutions (EBS) short position in a put option contract (strike: $65; expiration: 19FEB2021) was closed for $50.69, netting $148.61 or 2.3% of the $6,500 required for collateral. The position was held for 13 days. On 30DEC2020 EBS traded for $92.90 when we entered the order to sell this now-closed short position; today shares trade at $108.58 – up $5.20 from where it closed yesterday; when our position closed, EBS had appreciated almost 11% during the time we held the short position.
Later during yesterday’s trading period, a similar short position in two FuboTV (FUBO) put option contracts (strike: $22.50; expiration: 19FEB2021) were closed on our standing limit order. FUBO has been volatile over the past month as described in my most recent post. Yesterday, FUBO shares appreciated more than 10% and our short position was repurchased on our limit order. The position was open for twelve days and netted $477.24 or 10.6% of the collateral.
Today, our short position in a Unity (U) put option contract (strike: $110; expiration: 19FEB2021) was closed on a standing limit order as the market opened. Open for just one week, we initiated the short position in the U contract on 6JAN2021 when U traded around $139.03; today U traded for $150.67 not long after our option was repurchased to close, up roughly 8%. We netted $173.61 or 1.6% on the U contract.