We have a net debit on JPMorgan Chase (JPM) after our shares were called away. I am recommending a put to sell. The income we generate will flip our net debit to cash in hand.
You can enter today’s trade even if you were not in the previous one. Just be aware that we will be tracking and managing it based on the ongoing position.
I am also recommending a call to sell against our uncovered SPDR S&P Biotech ETF (XBI) shares to reduce our cost basis. Note that this trade is only for people who already own shares of XBI uncovered from a previous position.
Current Stock Price: $150.28
Net Debit: $0.14
Action: Sell to open the JPM Jan Week Four (1/28) 145 Put for around $0.86, but adjust as needed to sell a put today
New Cash in Hand: $0.72
XBI Uncovered Shares
Current Stock Price: $95.46
Cost Basis: $109.58
Action: Sell to open the XBI Jan Week Four (1/28) 100 Call for around $1.32, but adjust as needed to sell a call today
New Cost Basis: $108.26