We have positions in JPMorgan Chase (JPM), Nike (NKE) and SPDR S&P Biotech ETF (XBI) expiring today.
I am recommending we allow our JPM shares to be called away given that the company is scheduled to report earnings next week. We will sell a put after the announcement to reduce our net debit on the position.
Let’s close the top leg of our NKE bull put spread to ensure we don’t get assigned.
Finally, our XBI put is deep in the money. I am recommending we accept shares. We will sell a call against them soon to reduce our cost basis.
JPM Jan Week One (1/7) 160 Call
Current Stock Price: $165.58
Cost Basis: $160.14
Action: Allow shares to be called away
Net Debit: $0.14
NKE Jan Week One (1/7) 155/145 Put Spread
Current Stock Price: $158.63
Cash in Hand: $0.45
- Buy to close the NKE Jan Week One (1/7) 155 Put for around $0.05
- Watch the NKE Jan Week One (1/7) 145 Put expire worthless
Profit: $0.40, or $40 per spread
XBI Jan Week One (1/7) 112 Put
Current Stock Price: $104.89
Cash in Hand: $1.74
Action: Accept shares
Cost Basis: $110.28