Some of you own Peloton Interactive (PTON) shares uncovered. For those people, I am recommending a call to sell to reduce out cost basis on the position.
I am also recommending a spread on Peloton for those of you who have a net debit from the previous PTON spread position.
Our Taiwan Semiconductor Manufacturing (TSM) spread is on track to expire worthless. I will recommend a new spread soon to reduce our net debit.
PTON Uncovered Shares
Current Stock Price: $103.15
Cost Basis: $123.05
Action: Sell to open the PTON Apr Week One (4/1) 107 Call for around $1.91, but adjust as needed to sell a call today
New Cost Basis: $121.14
Net Debit: $8.93
- Sell to open the PTON Apr Week One (4/1) 100 Put for around $2.13
- Buy to open the PTON Apr Week One (4/1) 90 Put for around $0.46
- Set initial credit limit at $1.67, but adjust as needed to sell a spread today
New Net Debit: $7.26
TSM Mar Week Four (3/26) 110/105 Put Spread
Current Stock Price: $113.42
Net Debit: $4.52
Action: Watch spread expire worthless