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Profitable TRV Short Update; Taking Profit Vs Selling Puts

|Includes: The Travelers Companies, Inc. (TRV)

I spoke about shorting TRV originally on May 2 when the stock was trading above 84. The stock has given ample opportunity to build a short position over the past month and depending on your average cost (between 84 - 86) you should have a nice profit in hand.

At this point, you can either cover the short and take the profit, or look into selling puts to generate more income on the trade. For instance, the July 77.5 puts are bringing in between 1.45 - 1.55 and could add an extra 1.5% to your profit.

Good trade.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.