Expedia (EXPE) is rallying today after selling off earlier in the week. However, the stock price remains between the strike prices of our bull put spread.
Therefore, I am recommending we close the current position and open a new spread with lower strike prices that expires on June 3.
Note that this trade is only for members already in the EXPE position.
Current Stock Price: $127.36
Cash in Hand: $0.64
- Buy to close the EXPE May Monthly (5/20) 130 Put for around $3.67
- Sell to close the EXPE May Monthly (5/20) 125 Put for around $1.11
- Set initial debit limit at $2.56, but adjust as needed to close today
- Sell to open the EXPE Jun Week One (6/3) 110 Put for around $1.11
- Buy to open the EXPE Jun Week One (6/3) 105 Put for around $0.75
- Set initial credit limit at $0.36, but adjust as needed to close today
New Net Debit: $1.56