**CORRECTION – original post mentioned KRE, but this is for KBE.
S&P Regional Bank ETF (KBE): 38.05
CPI numbers were released this morning and being in line the market is in full risk-on mode. While we still expect some pain for the banks and regional banks, a rising tide lifts all boats. Our KBE and KRE trades are in the loss zone and need adjusting. Let’s manage KBE today as we have more time on KRE.
KBE trade 1: close the existing BWB 16 Jun 34/35/40 calls for a debit of around 2.20.
STC the KBE 16 JUN 34 call (5 contracts)
BTC the KBE 16 JUN 35 call (10 contracts)
STC the KBE 16 JUN 40 call (5 contracts)
We had a 0.50 credit on the original trade so this will result in a debit of 1.60 that we will carry forward and add a new trade later.
Leave the existing 21 Jul BWB in place. We are going to use that for future adjustments.