Peloton Interactive (PTON) continues to head in the wrong direction. Our standalone put is deep in the money, and I am recommending you accept shares. We will sell calls against them to bring in income and reduce our cost basis.
Our PTON put spread is on track to expire worthless. We will sell another spread soon to continue to work down our net debit on the position.
Finally, Taiwan Semiconductor Manufacturing (TSM) is trading below the top leg of our spread. I am recommending we roll it down and out a week.
PTON Mar Monthly (3/19) 125 Put
Current Stock Price: $108.41
Cash in Hand: $1.95
Action: Accept shares
Cost Basis: $123.05
PTON Mar Monthly (3/19) 90/80 Put Spread
Net Debit: $8.93
Action: Watch spread expire worthless
TSM Mar Monthly (3/19) 115/110 Put Spread
Current Stock Price: $113.96
Net Debit: $4.05 (Note: The cost basis was incorrectly listed as $5.05 in the previous alert.)
- Buy to close the TSM Mar Monthly (3/19) 115 Put for around $1.30
- Sell to close the TSM Mar Monthly (3/19) 110 Put for around $0.03
- Set your initial debit limit at $1.27
- Sell to open the TSM Mar Week Four (3/26) 110 Put for around $1.21
- Buy to open the TSM Mar Week Four (3/26) 105 Put for around $0.41
- Set your initial credit limit at $0.80
New Net Debit: $4.52