Let’s book profits on our Applied Materials (AMAT) and Microsoft (MSFT) bull put spreads rather than risk a reversal later in the week to collect a few more cents in premium.
AMAT Mar Monthly (3/17) 106/101 Put
Current Stock Price: $119.45
Cash in Hand: $0.24
Action:
- Buy to close the AMAT Mar Monthly (3/17) 106 Put for around $0.08
- Sell to close the AMAT Mar Monthly (3/17) 101 Put for around $0.03
- Set initial debit limit at $0.05, but adjust as needed to close today
Profit: $0.19, or $19 per spread
MSFT Mar Monthly (3/17) 235/230 Put Spread
Current Stock Price: $257.29
Cash in Hand: $0.20
Action:
- Buy to close the MSFT Mar Monthly (3/17) 235 Put for around $0.13
- Sell to close the MSFT Mar Monthly (3/17) 230 Put for around $0.07
- Set initial debit limit at $0.06, but adjust as needed to close today
Profit: $0.14, or $14 per spread