The Money Tree

Safely Generating Income in Retirement

Position Update – KSS

Posted by mounddweller on January 25, 2013

Fellow Traders,

Don’t you love it when a trade works out exactly as planned!  Today I closed out my position in KSS by buying to close my FEB $40 puts at $0.05.  You’ll recall I originally sold these puts back on January 11 for $0.55.  So, with just a 14-day holding period I was able to earn 1.09% ROIC (net of all fees and commissions).

In my original post (https://troysmoneytree.wordpress.com/2013/01/12/new-position-kss/) I noted that the stock had fallen sharply and was rapidly approaching long-term support at $40.  I also noted the stock had begun to pull away from the lower bollinger band which was a good indicator that it was ready to begin moving back up.  You can see in the chart below (thanks Yahoo) that is exactly what happened.

With 3 weeks remaining to expiration and only $0.05 premium left I chose to take the money and run.

I’ll be back later with a write-up on my other trade, GDX which isn’t turning out quite so well.

Regards,

Troy

BLOG - KSS 3 Month Chrt 2

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