I am recommending we roll our Airbnb (ABNB) and Block (SQ) puts out one week to avoid assignment and buy time for the stocks to recover. I will discuss these positions in more depth in today’s live trading session at noon Eastern.
Note that the spreads between the bid and the ask on these options are wide. Please work your limit orders. Rolling is more important than the stated credit limit.
ABNB Mar Week Two (3/10) 125 Put
Current Stock Price: $119.95
Cash in Hand: $1.13
Action:
- Buy to close the ABNB Mar Week Two (3/10) 125 Put for around $5.35
- Sell to open the ABNB Mar Monthly (3/17) 125 Put for around $6.45
- Set initial credit limit at $1.10, but adjust as needed to roll today
New Cash in Hand: $2.23
SQ Mar Week Two (3/10) 76 Put
Current Stock Price: $70.69
Cash in Hand: $0.53
Action:
- Buy to close the SQ Mar Week Two (3/10) 76 Put for around $5.20
- Sell to open the SQ Mar Monthly (3/17) 76 Put for around $6
- Set initial credit limit at $0.80, but adjust as needed to roll today
New Cash in Hand: $1.33