Small Account Trader PRO Alert: Close XBI Trade

Our hedged synthetic covered call position on XBI has one week to go and we’re sitting with a solid profit. We have roughly 2.91 of credit built up depending on your fill prices. It will cost around a net 0.60 debit to close the position leaving us with around 2.30 of profit per contract or around $1,100 to $1,100 of net profit for the trade.


Let’s close the position and take the gains. 




SPDR S&P Biotech ETF (XBI):  82.91


TRADE ACTION 1:  CLOSE the XBI 30 Dec 83 call and the 23 Dec 83 call for a net credit of around 0.70

STC the XBI 30 Dec 83 call

BTC the XBI 23 Dec 83 call


TRADE ACTION 2:  CLOSE the XBI 30 Dec 83 put and the 30 Dec 78 put for a net debit of around 1.30

STC the XBI 30 Dec 78 put

BTC the XBI 30 Dec 83 put


The Master Portfolio is trading 5 contracts