This morning our short position in a Lemonade (LMND) put option contract (strike: $70; expiration: 7MAY2021) was closed as shares spiked within the first hour of trading. Our standing limit order was filled to net $63.63 on the $7,000 in capital collateralized for the trade. Over the eight days the trade was active our return was 0.9% and 41.5% on an annual basis.
LMND shares have reversed their direction as today’s trading has progressed so I plan to look for another opportunity to trade this, or similar LMND, put option contracts.
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