$205 profit in ITW
- themoneyloaf
- Jun 25
- 2 min read
Happy Sunday!
Just last week I shared a winning trade with $180 realized profit in ITW, this week I'm back with a double dip in the same stock.
This week:
$205 profit in Illinois Tool Works (ITW)
$205 profit in ITW
After entering the previous ITW trade, there was a period where ITW continued to drop in price, which set up an opportunity to enter a double dip.
With volatility on the higher end, I sold another cash-secured put in ITW in the Jul 17 expiration, this time at the $230 strike and receiving $270 credit for the trade.
With reference to the previous ITW trade, I was willing to enter the trade at $240, so it makes sense that I would be equally willing to enter the trade at $230!
Not to long after the trade was placed, the entire market rallied and volatility dropped, which triggered my closing order to buy back my position for $65.
This resulted in a realized profit of $205, or 75% of max profit.
You can see in the post I wasn't quite planning to close the trade, but my profit target was hit and I was happy to take the win. This is why I strongly believe in setting GTC (good till cancelled) orders, because you never know when profits unexpectedly pop up!
This trade (and all trades in this newsletter) are shared in close-to real time to my private community as updates in my own portfolio (not recommendations). If you're familiar with the basic mechanics of options, you can consider joining the private community to view these updates as well.
And of course the guidance for managing and closing both trades were posted to the community as well.
You can find out more about my private community at the link below.
Have a good weekend!
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This article is for educational purposes only. This is my own portfolio which is being managed according to my goals and risk tolerance. Your situation is likely different and you should do your own due diligence before investing in stocks or options.
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