We exited our Apple (AAPL) spread to avoid potential assignment, although shares did end up closing above our short strike. I am recommending a new spread to reduce our net debit on the position. However, you can enter the trade even if you were not in the previous one.
I am also recommending a call to sell against our uncovered VanEck Vectors Semiconductor ETF (SMH) LEAP to reduce our cost basis on the position. If you are not in the current position and want to enter today by buying a LEAP and selling a call, just be aware that we will be managing and tracking based on the ongoing position.
Current Stock Price: $164.33
Net Debit: $0.90
- Sell to open the AAPL Mar Week Two (3/11) 155 Put for around $0.99
- Buy to open the AAPL Mar Week Two (3/11) 150 Put for around $0.52
- Set initial credit limit at $0.47, but adjust as needed to sell a spread today
New Net Debit: $0.43
SMH Jan 2023 (1/20/23) 250 Call
Current Stock Price: $263.28
Cost Basis: $67.95
Action: Sell to open the SMH Mar Week Two (3/11) 270 Call for around $4.35, but adjust as needed to sell a call today
New Cost Basis: $63.60