Our SPDR S&P Biotech ETF (XBI) shares were called away after a run-up in the sector took the ETF well above our call’s strike. Now that the rally appears to have stalled, it’s time to sell a put to generate income and reduce our net debit on the position.
You can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it as an ongoing position.
Current Stock Price: $79.83
Net Debit: $14.77
Action: Sell to open the XBI Jul Monthly (7/15) 75 Put for around $0.41, but adjust as needed to sell a put today
New Net Debit: $14.36