We have net debits on Lululemon Athletica (LULU) and Peloton Interactive (PTON) from ongoing spread positions. I am recommending we initiate new spreads today to reduce those net debits.
You can enter today’s spreads even if you were not in the previous trades. Just be aware that we will be tracking them as ongoing positions.
If you are new to spread trading, please watch my Bull Put Spread Coaching Session before entering the trades.
LULU
Current Stock Price: $337.65
Net Debit: $3.55
Action:
- Sell to open the LULU Jun Monthly (6/18) 315 Put for around $1.04
- Buy to open the LULU Jun Monthly (6/18) 305 Put for around $0.57
- Set initial credit limit at $0.47
New Net Debit: $3.08
PTON
Current Stock Price: $108.07
Net Debit: $6.99
Action:
- Sell to open the PTON Jun Monthly (6/18) 95 Put for around $0.79
- Buy to open the PTON Jun Monthly (6/18) 85 Put for around $0.21
- Set initial credit limit at $0.58
New Net Debit: $5.41