Our Expedia (EXPE) spread is well out of the money and on track to expire worthless. We will simply watch it do so and sell another spread soon to reduce our net debit on the position.
Our FedEx (FDX) spread is also out of the money, but the stock is giving back some of today’s gains. I am recommending we close the position now rather than risk having to roll it. We will still be earning a 4% return on our capital in 18 days, or 81% annualized.
EXPE Jul Monthly (7/15) 85/80 Put Spread
Current Stock Price: $92.75
Net Debit: $5.56 (Note that the net debit was incorrectly listed as $5.36 in the previous alert.)
Action: Watch spread expire worthless
FDX Jul Monthly (7/15) 215/210 Put Spread
Current Stock Price: $217.74
Cash in Hand: $0.37
- Buy to close the FDX Jul Monthly (7/15) 215 Put for around $0.20
- Sell to close the FDX Jul Monthly (7/15) 210 Put for around $0.03
- Set initial debit limit at $0.17, but adjust as needed to close today
Profit: $0.20, or $20 per spread