I don’t love the way SPDR S&P Biotech ETF (XBI) is trading. I am recommending we exit our put now with a small loss rather than risk having to roll the position out a week.
Current Stock Price: $85.10
Cash in Hand: $0.75
Action: Buy to close the XBI Feb Monthly (2/17) 85 Put
Current Option Price: $0.81-$0.89
Recommended Limit: Set your initial limit order at $0.85, but adjust as needed to close today
Loss: $0.10, or $10 per contract
Rate of Return: -0.1% in seven days, or -6% on an annualized basis