Our Constant Cash Flow system has an open put-option trade on Axos Financial (AX): the AX 15 Dec 23 $27.5 Put.
While it's not due to expire until Dec. 15, the stock has experienced unusual volatility since we entered the trade on Nov. 12. Recently AX was the subject of a negative story by Edwin Dorsey of The Bear Cave newsletter, which was also broadcast by Benzinga Newswire. The report calls into question the company's lending practices.
Currently, you should have about 80% open gains on the AX put sale, and due to the stock's unusual volatility, it makes sense to close this trade early and move on.
Action to Take:
Buy to close your AX 15 Dec 23 $27.5 Put option (AX231215P00027500) now.
I'll be back later with Mike's Money Line for this week. If you have any questions or concerns, reach out to me at emailmikeburnick@tradesmith.com and include "Constant Cash Flow" in the subject line.
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