The sharp market sell-off has caused the protective put on our Apple (AAPL) LEAP call spread to spike in price.
I am recommending we roll it down to a lower strike. This will allow us to reduce our cost basis on the position while keeping our hedge in place.
Note: No action is needed on the AAPL Jun 2023 (6/16/23) 100/Jun Monthly (6/17) 150 Call Spread at this time.
Current Stock Price: $138.23
Cost Basis: $53.58
- Sell to close the AAPL Jun Monthly (6/17) 145 Put for around $7.40
- Buy to open the AAPL Jun Monthly (6/17) 135 Put for around $1.93
- Set initial credit limit at $5.47, but adjust as needed to roll today
New Cost Basis: $48.11