Ticker: XBI
Price: $83.41
Date: 5/4/23 1:07 pm
Underlying: S&P Biotech ETF

Master Portfolio Contracts: 20

Notes: It’s been a challenging trading week with the market trading lower on Fed rate hikes and bank scares. The good news is the XBI has been trading in a tight range. We can close our XBI calendar/diagonal spread for a profit of around $2,400 to $2,500 and re-set it to collect more cash.

Trade Detail: 

TRADE ACTION 1 (trade close):
STC 20x XBI 16-JUN 77 put
BTC 20x XBI 5-MAY 79 put
STC 20 XBI 16-JUN 83 put
BTC 20 XBI 5-MAY 83 put

Price: 4.55 credit

TRADE ACTION 2 (new calendar):
BTO +20 XBI 21 JUL 83 put
STO -20 XBI 19 MAY 83 put
Price: 2.49 debit

Position after trade detail:

+20 XBI 21 JUL 83 put
-20 XBI 19 MAY 83 put