Yesterday, Monday, March first, our Redfin (RDFN) put option contract (strike: $60; expiration: 19MAR2021) short position was closed on the initial standing limit order. The position was initiated on 25FEB2021 for $104.30 as the broader market fell due, in part, to rising interest rates. RDFN has rebounded yesterday and our limit order to close was filled for $50.69. We turned a quick 0.9% profit, $53.61, in five days.
I was glad to have the position closed with the recent volatility we’ve seen in the market. Our collateral for the RDFN trade was only $6,000 but I am happy to have the liquidity. At today’s open our available cash was 12% of the portfolio and I’d like to write more put option contracts if we the market correction continues.