Our Peloton Interactive (PTON) call is deep in the money. Rather than roll, I am recommending we allow our shares to be called away. We will carry over a net debit and sell puts against the stock soon to work our way toward breakeven.
Our PTON spread is on track to expire worthless. We will simply watch it do so. Next week, I will recommend a new spread on PTON, as well as on Taiwan Semiconductor Manufacturing (TSM), to reduce our net debit.
PTON Apr Week One (4/1) 107 Call
Current Stock Price: $112.48
Cost Basis: $121.14
Action: Allow shares to be called away
Net Debit: $14.14
PTON Apr Week One (4/1) 100/90 Put Spread
Net Debit: $7.26
Action: Watch spread expire worthless