The market is falling today despite some stellar earnings reports from big tech companies. This leads me to believe this growth must have been priced in already and that Wall Street is more concerned with too much growth (i.e., inflation) and its effect on the bond market.
In light of this, I am recommending we close all three of our expiring positions now.
We will book a small profit on our Advanced Micro Devices (AMD) put.
Our Etsy (ETSY) put is underwater and closing now will result in us incurring a net debit. We will continue the position after the company’s earnings report next week with a new put recommendation.
I will also recommend a new Peloton Interactive (PTON) spread soon to reduce our net debit on the position.
AMD Apr Week Five (4/30) 83 Put
Current Stock Price: $82.89
Cash in Hand: $0.76
Action: Buy to close the AMD Apr Week Five (4/30) 83 Put for around $0.52
Profit: $0.24, or $24 per contract
ETSY Apr Week Five (4/30) 205 Put
Current Stock Price: $203.21
Cash in Hand: $1.56
Action: Buy to close the ETSY Apr Week Five (4/30) 205 Put for around $2.69
Net Debit: $1.13
PTON Apr Week Five (4/30) 95/85 Put Spread
Current Stock Price: $99.26
Net Debit: $8.13
- Buy to close the PTON Apr Week Five (4/30) 95 Put for around $0.09
- Sell to close the PTON Apr Week Five (4/30) 85 Put for around $0.01
- Set initial debit limit at $0.08
New Net Debit: $8.21