I am recommending a new bull put spread on Moderna (MRNA). The income we generate will reduce our net debit on the position.
However, you can enter today’s spread even if you were not in the previous position. Just be aware that we will be tracking and managing it based on the ongoing position.
And if you are new to spread trading, please watch my Bull Put Spread Coaching Session before entering the trade.
We also have a net debit on Peloton Interactive (PTON) from an ongoing spread position. I am recommending we book a loss rather than put on a new spread. The position has not worked for us and it’s time to move on.
Current Stock Price: $336.84
Net Debit: $6.09
- Sell to open the MRNA Oct Week Five (10/29) 300 Put for around $1.18
- Buy to open the MRNA Oct Week Five (10/29) 290 Put for around $0.58
- Set initial credit limit at $0.60
New Net Debit: $5.49
Current Stock Price: $92.58
Net Debit: $5.58
Action: Book a loss and move on
Loss: $5.58, or $558 per spread