I am recommending we close our Apple (AAPL) bull put spread at a loss. However, track your net debit, as I will be recommending a new spread soon to continue the position.
And let’s book a profit on our Walt Disney (DIS) spread rather than risk holding through expiration.
AAPL Feb Week Four (2/25) 162.50/157.50 Put Spread
Current Stock Price: $161.71
Cash In Hand: $0.39
Action:
- Buy to close the AAPL Feb Week Four (2/25) 162.50 Put for around $1.37
- Sell to close the AAPL Feb Week Four (2/25) 157.50 Put for around $0.08
- Set initial debit limit at $1.29
Net Debit: $0.90
DIS Feb Week Four (2/25) 143/138 Put Spread
Current Stock Price: $147.32
Cash In Hand: $0.36
Action:
- Buy to close the DIS Feb Week Four (2/25) 143 Put for around $0.05
- Sell to close the DIS Feb Week Four (2/25) 138 Put for around $0.02
- Set initial debit limit at $0.03
Profit: $0.33, or $33 per spread