Our Chewy (CHWY) shares are on track to be called away, which will result in a net debit on the position. I will recommend a put to sell after the company announces earnings next week.
I am recommending we roll our SPDR S&P Regional Banking ETF (KRE) put out one week. And let’s book profits on Moderna (MRNA).
CHWY Jun Week One (6/4) 75 Call
Current Stock Price: $76.40
Cost Basis: $79.57
Action: Allow shares to be called away
Net Debit: $4.57
KRE Jun Week One (6/4) 71 Put
Current Stock Price: $70.21
Cash in Hand: $0.39
Action:
- Buy to close the KRE Jun Week One (6/4) 71 Put for around $0.79
- Sell to open the KRE Jun Week Two (6/11) 71 Put for around $1.40
- Set initial credit limit at $0.61
New Cash in Hand: $1
MRNA Jun Week One (6/4) 190 Put
Current Stock Price: $203.41
Cash in Hand: $0.91
Action: Buy to close the MRNA Jun Week One (6/4) 190 Put for around $0.07
Profit: $0.84, or $84 per contract