With little premium left in our Expedia (EXPE) spread, I am recommending we close the current position and open a new spread to reduce our net debit on the position.
You can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
If you are new to spread trading, please watch my Bull Put Spread Coaching before entering the trade.
Current Stock Price: $107.23
Net Debit $1.35
- Buy to close the EXPE Dec Week One (12/2) 90 Put for around $0.02, but adjust as needed to close today
- Watch the EXPE Dec Week One (12/2) 85 Put expire worthless
- Sell to open the EXPE Dec Monthly (12/16) 95 Put for around $0.77
- Buy to open the EXPE Dec Monthly (12/16) 90 Put for around $0.36
- Set initial credit limit at $0.41, but adjust as needed
New Net Debit: $0.96