Three Options Trades Lapsing Today – AIG, MMC, WM
Just a quick update for subscribers — we have three options positions lapsing today in AIG, MMC, and WM.
Unfortunately, these trades didn’t go our way this time. It happens — not every setup plays out as expected. What matters is managing risk, staying disciplined, and learning from the outcomes.
🟩 WM (Waste Management)
We highlighted this long idea on April 16th, when the stock was trading at $232.52. It's currently at $228.02 (-2%).
Despite posting an earnings beat (EPS of $1.67 vs $1.59 expected), the stock has underwhelmed. Revenue came in a bit soft, but the company delivered a confident outlook. This prompted broker upgrades — HSBC raised its price target to $265, and Citi to $271.
However, price action has been sluggish. A surge of call options activity ahead of earnings now appears to be unwinding, which hasn’t helped momentum.
🟥 AIG (American International Group) & MMC (Marsh McLennan)
These were short ideas published on April 11th. The sector as a whole has held up well since then — the KIE Insurance ETF is up 4% over the same period.
MMC is up +0.89% from our initial reference of $229.29. It did hit our Target 1 of $217.75 and traded as low as $209.92, but we held the option expecting further downside. Unfortunately, the follow-through didn’t come — and with theta decay accelerating into expiry, the value of the position eroded even as price stayed within range.
AIG is up +2.32% from our entry at $81.34. The lowest price during the trade window was $78.45, still some distance from our Target 1 of $75. Sector strength helped hold it up.
We’ll continue to review and refine our setups and remain focused on delivering high-quality ideas over time. Thanks, as always, for being part of the journey.