Our Expedia (EXPE) bull put spread is well out of the money. I am recommending we close it for a few cents. This will allow us to enter a new spread to generate more income and 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.
With Expedia expected to report earnings on Nov. 3, we will be sitting out the following week.
Current Stock Price: $93.48
Net Debit: $2.50 (The net debit was incorrectly listed as $2.47 in the previous alert.)
- Buy to close the EXPE Oct Monthly (10/21) 90 Put for around $0.06
- Sell to close the EXPE Oct Monthly (10/21) 85 Put for around $0.03
- Set initial debit limit at $0.03, but adjust as needed to close today
- Sell to open the EXPE Oct Week Four (10/28) 85 Put for around $0.43
- Buy to open the EXPE Oct Week Four (10/28) 80 Put for around $0.13
- Set initial credit limit at $0.30, but adjust as needed
New Net Debit: $2.23