We're going to take a loss on this trade and prepare for a fresh entry.
The original trade setup was on February 27th, basically the height of the stock.
The spreads sold were the Apr 325/320 Put Spread, with fills at 0.7, 1, and 1.3
The current value of the spread is 1.35.
Here's why the trade is being closed:
- There is under two weeks to expiration
- The short strike is 4 points away
- The stock is moving, on average, 10 points a day
- All it takes is one move lower and the spread goes in the money and the trade will be a large loss.
Instead, buy to close all Tiers at 1.35
A new trade plan will be added to Thursday's email for how to play BA if it rolls over again.