Let’s try this again! On Monday, we sent an alert in error to close the SPDR S&P Biotech ETF (XBI) put. We apologize again for any confusion this caused.
Today, the premium has fallen to an acceptable level given the extra cash we picked up on the roll. Let’s close it now and free up capital for new trades.
Current Stock Price: $75.41
Cash in Hand: $1.91
Action: Buy to close the XBI Apr Week One (4/6) 75 Put
Current Option Price: $1.13-$1.23
Recommended Limit: Set your initial limit order at $1.18, but adjust as needed to close today
Profit: $0.73, or $73 per contract
Rate of Return: 1% in nine days, or 39% on an annualized basis