I am recommending we roll our SPDR S&P Biotech ETF (XBI) put out two weeks and to a lower strike price. While we will be spending some cash to do so, we are reducing our exposure to the stock by $5.
Current Stock Price: $78.06
Net Debit: $7.57
- Buy to close the XBI Sep Week Five (9/30) 80 Put for around $2.35
- Sell to open the XBI Oct Week Two (10/14) 75 Put for around $2.05
- Set initial debit limit at $0.30, but adjust as needed to roll today
New Net Debit: $7.87