It appears as though our DELL short put will expire for a max gain of the credit received. We have sold another to replace it today as follows:
Sell to open: DELL Dec 19th (monthly) 105.00 strike put
Credit: 3.35
We have taken the $335 credit received and bought the following shares with it.
Bought 1 share of PANW at 181.13
Bought 1 share of DELL at 117.97
Leaves us with +$35.90 in cash to add to our pile as well.
In addition, using our Long SPY Dec put as part of the position. We have bought a 1×2 put spread in SPY with next Friday expiration. Since we own the December puts, this is not a “naked” position.
Buy to open: SPY Nov 28th (weekly) 645.00 strike put (ratio of 1)
Sell to open: SPY Nov 28th (weekly) 630.00 strike put (ratio of 2)
Debit: 0.60
Likely Risk = 0.62 or $62.00 per spread
Max reward = 14.38 or $1,438.00 per spread
More risk below 615.58/share in SPY but our long Dec put takes care of that risk.
Finally, we have a trade in PayPal (PYPL) that has worked wonderfully well. We need to exit the position today for as large a credit price as possible. Because we are trading near our short leg, we will exit the position near the close of trading today. So, around 3:30-3:45 p.m. ET we will close the entire PYPL position as follows (we won’t be sending another newsletter).
Sell to close: PYPL Nov 21st (monthly) 65.00 strike put (ratio of 1)
Buy to close: PYPL Nov 21st (monthly) 60.00 strike put (ratio of 2)
Credit: as large as possible