We had a couple of retail trades gone wrong recently (TJX, LOW, COST) but this selling has allowed us to get bailed out a little in at least one of them. Costco. Here was the original trade:
Trade: COST ($139) Bought to Open Aug 140/130/125 broken wing Put Butterfly for $2.70
With the stock now at 140 and only a few hours until expiration we’re going to take what we can here off the table on what was a worthless trade:
Update: COST ($139.30) Sold to close the Aug 140 puts at .70 for a 2.00 loss
This also cleans up the trade so that you’re we’re not short COST stock coming in Monday if the stock closes below 140 today. The 130 puts will expire worthless and don’t need to be closed.