Let’s book profits on our Costco (COST) bull put spread rather than risk a market reversal before expiration. We’ll earn a 6.2% return in nine days, or 251% annualized.
Current Stock Price: $485.51
Cash in Hand: $0.36
- Buy to close the COST Mar Monthly (3/17) 460 Put for around $0.15
- Sell to close the COST Mar Monthly (3/17) 455 Put for around $0.10
- Set initial debit limit at $0.05, but adjust as needed to close today
Profit: $0.31, or $31 per spread