Both QuantumScape (QS) and Twitter (TWTR) are sharply higher today.
I am recommending we roll our QS put to a higher strike to bring in more cash.
And we are rolling our TWTR call up and out one week to generate more income and capture more potential appreciation.
QS Mar Week One (3/5) 45 Put
Current Stock Price: $61.92
Cash in Hand: $0.75
Action:
- Buy to close the QS Mar Week One (3/5) 45 Put for around $0.35
- Sell to open the QS Mar Week One (3/5) 50 Put for around $1
- Set your initial credit limit at $0.65, but adjust as needed to roll today
New Cash in Hand: $1.40
Expiration: After the close on Friday, March 5
Potential Rate of Return: 2.8% in 11 days, or 93% on an annualized basis, if the option expires worthless
TWTR Feb Week Four (2/26) 75 Call
Current Stock Price: $78.70
Cost Basis: $71.47
Action:
- Buy to close the TWTR Feb Week Four (2/26) 75 Call for around $4.45
- Sell to open the TWTR Mar Week One (3/5) 76 Call for around $4.75
- Set your initial credit limit at $0.30, but adjust as needed to roll today
New Cost Basis: $71.17
Expiration: After the close on Friday, March 5
Potential Rate of Return: 6.4% in 18 days, or 132% on an annualized basis, if shares are called away
