The Put Calendar is in surgery

One of the key stocks that was pummeled today was $ISRG after it lowered guidance and received a downgrade. Situations like this are attractive to me due to the level of panic and volatility in the trading so I had it on my radar early in the day.

For my trade, I ultimately decided on a Short Put Calendar using the July & August strikes:

I am short the August 400 Put at $12
I am long the July 400 Put at $5
This trade was done for a $7 credit
This trade takes margin

The thesis here is that a bottoming process is under way, even if short term, so I wanted to collect some premium now — but protected until July expiration in case I am too early here. The next step is to monitor to see how solid the floor is then spend some of the premium on an August Call Spread.

For now this stock remains in surgery.

One thought on “The Put Calendar is in surgery

  1. Added a July 430/435 CS for $1 debit (8.60/7.60) on 7/10. Cushion now at $6

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