I am recommending we roll our Moderna (MRNA) and SPDR S&P Biotech ETF (XBI) puts out one week. The income we generate will reduce our net debit on the positions.
However, you can enter the second leg of today’s trades even if you were not in the previous ones. Just be aware that we will be managing and tracking them as ongoing positions.
MRNA Jul Week Four (7/22) 145 Put
Current Stock Price: $167.43
Net Debit: $3.29
Action:
- Buy to close the MRNA Jul Week Four (7/22) 145 Put for around $0.07
- Sell to open the MRNA Jul Week Five (7/29) 150 Put for around $1.52
- Set initial credit limit at $1.45, but adjust as needed to roll today
New Net Debit: $1.84
XBI Jul Week Four (7/22) 80 Put
Current Stock Price: $84.57
Net Debit: $12.43
Action:
- Buy to close the XBI Jul Week Four (7/22) 80 Put for around $0.18
- Sell to open the XBI Jul Week Five (7/29) 80 Put for around $0.87
- Set initial credit limit at $0.69, but adjust as needed to roll today
New Net Debit: $11.74