Normally, we open our short put positions with the intent of holding them through their expiration dates. But in the case of the short put position I opened less than a month ago, the stock has run up so fast that I feel it is prudent to buy it back for pennies on the dollar to ensure this trade doesn’t turn around on us.

Yesterday, Xerox upgraded its earnings guidance for 2019. The stock jumped more than 10% as a result and is up another 2% this morning. Who knows, perhaps XRX will head even higher but as flukey as this market is, I’m booking my gain while it’s there for the taking!

NOTE: This alert is only to close out an existing position. If you did not sell a short put on XRX to begin with then please ignore this trade alert!

How to Make the Trade:

• Trade: Buy to close the July 19, 2019, $19 put option on Xerox (NYSE: XRX).
• Symbol: XRX190719P00019000
• Limit Order Price: a credit of $0.50 (50 cents) or less.

Tell your broker: “I want to buy a put* on Xerox stock. Specifically, I want to ‘buy to close’ one $19 Put that expires on July 19 for a debit of $0.50 (50 cents) per share or less.”

*Since this is a closing transaction, buy as many contracts as you originally sold that are still open (i.e., you have not already closed out).