$200 profit in HSY

Happy weekend!

A couple of weeks ago I shared a trade in KO which was one of two under-performing trades that I carried over from 2024.

With this week's update, I'm pleased to announce that all trades from 2024 are closed and the oldest trade in the portfolio was placed in February 2025.

This also means that every other previous trade going back to September 2022 - when this newsletter and portfolio was launched - has been closed for a profit.

Some happen quickly like the PEP & PG trades that closed in just 4 days that I shared last week.

Some take longer like this HSY trade and the aforementioned KO trade, but eventually the strategy gives the market enough time to sort it out (and make some money in the process).

$200 profit in Hershy (HSY)

In December 2024 I noticed that HSY was going through some weird price movement, and after some googling realized that there was some chatter about a takeover which was pushing volatility and option prices up.

So I decided to enter a bonus trade, selling the $165 cash-secured put in HSY expiring on Jan 17 for $150 in premium.

Of course the line "$165 hasn't been touched in years" would turn out to bite me in the butt because just a few weeks later on 8 Jan 2025, the stock dropped below that level and dipped all the way to $142 in February.

This means I would be obliged to buy 100 shares of HSY at $165 per share. Something I didn't mind doing, but I wanted to be forced to do it.

So when this happens, the way to manage the position is to "roll" the position out to the next month. The benefit is that it kicks the can down the road a little bit, while still generating some cashflow in the process.

Throughout January this trade looked horrible, at some point showing an unrealized loss of more than $2,000.

But I stuck to the plan and rolled this trade 3 times, bringing in a total of $393 in premium.

Eventually HSY did break back above $165 and I closed the position for $193, locking in a realized profit of $200.

Honestly, I could have waited a little longer and squeezed a bit more profit out of the trade, but it was my portfolio for nearly 3 months at this point and I didn't want to risk a reversal and having to roll again, so I went with the more conservative option.

As much as I would like every trade to be immediately profitable, sometimes it just doesn't happen. That's when I stick to the strategy to give the stock enough time to recover and eventually still emerge with a profit.

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Closing thoughts & useful links

The market didn't move all that much and basically ended the week flat, which is as close to a no-drama week as we've gotten in 2025.

It wasn't without opportunities though, as I took the chance to re-look at my portfolio and add 3 new positions this week, which I'm looking forward to sharing with you in the future.

Have a good weekend!

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This article is for educational purposes only. This is my own portfolio which is being managed according to my goals and risk tolerance. Your situation is likely different and you should do your own due diligence before investing in stocks or options.