We have a net debit on Chewy (CHWY), so I am recommending a new put to sell now that the stock appears to be stabilizing following the company’s earnings report.
I am also recommending a call to sell against our uncovered SPDR S&P Regional Banking ETF (KRE) shares to reduce our cost basis.
Note that these are ongoing positions. However, you can enter today’s trades even if you were not in the previous ones. Just be aware that we will be managing and tracking them as ongoing positions. And if you are new to the KRE position, you must buy 100 shares of the underlying ETF for every call you plan to sell to make sure your position is covered.
Current Stock Price: $75.27
Net Debit: $4.57
Action: Sell to open the CHWY Jun Monthly (6/18) 75 Put for around $1.42
New Net Debit: $3.15
KRE Uncovered Shares
Current Stock Price: $67.55
Cost Basis: $70
Action: Sell to open the KRE Jun Week Four (6/25) 70 Call for around $0.30
New Cost Basis: $69.70