Our Lululemon Athletica (LULU), Roku (ROKU) and Zoom Video Communications (ZM) spread expire today.
With all three stocks selling off sharply, I am recommending we close them now. If they were put positions, I would roll to buy more time. But they are not. They are highly leveraged spread so closing now is the right decision.
ZM can be closed for a small profit. We will carry over our net debits on LULU and ROKU when I recommend new spread positions on each.
LULU Oct Week Five (10/30) 310/300 Put Spread
Current Stock Price: $316.55
Net Debit: $8.07
Action:
- Buy to close the LULU Oct Week Five (10/30) 310 Put for around $0.58
- Sell to close the LULU Oct Week Five (10/30) 300 Put for around $0.05
- Set initial debit limit at $0.53
New Net Debit: $8.60
ROKU Oct Week Five (10/30) 200/190 Put Spread
Current Stock Price: $207
Cash in Hand: $0.31
Action:
- Buy to close the ROKU Oct Week Five (10/30) 200 Put for around $0.53
- Sell to close the ROKU Oct Week Five (10/30) 190 Put for around $0.10
- Set initial debit limit at $0.43
Net Debit: $0.12
ZM Oct Week Five (10/30) 450/440 Put Spread
Current Stock Price: $466.48
Cash in Hand: $0.70
Action:
- Buy to close the ZM Oct Week Five (10/30) 450 Put for around $1.05
- Sell to close the ZM Oct Week Five (10/30) 440 Put for around $0.45
- Set initial debit limit at $0.60
Profit: $0.10, or $10 per spread