Peloton Interactive (PTON) sold off sharply this week with other pandemic stocks on promising news about a potential coronavirus vaccine. I think this is an absurd overreaction and expect at least a modest bounce. I am recommending we roll our put to buy time for shares to recover.
The PTON spread has another week and a half until expiration, so no action is needed on that yet.
I am also recommending we book profits on our United Parcel Service (UPS) spread.
PTON Nov Week Two (11/13) 115 Put
Note: No action is needed on the PTON Nov Monthly (11/20) 115/105 Put Spread at this time.
Current Stock Price: $100.03
Net Debit $0.08
- Buy to close the PTON Nov Week Two (11/13) 115 Put for around $14.95
- Sell to open the PTON Nov Monthly (11/20) 115 Put for around $15.80
- Set initial credit limit at $0.85
Cash in Hand: $0.77
UPS Nov Monthly (11/20) 145/135 Put Spread
Current Stock Price: $166.50
Cash in Hand: $0.96
- Buy to close the UPS Nov Monthly (11/20) 145 Put for around $0.14
- Sell to close the UPS Nov Monthly (11/20) 135 Put for around $0.06
- Set initial debit limit at $0.08
Profit: $0.88, or $88 per spread