I am recommending we roll our Advanced Micro Devices (AMD) put out one week and to a lower strike. By doing so, we will avoid assignment and reduce our risk on the position.
Crocs (CROX) is flirting with the strike price of our put, so I am recommending we close it now at a modest profit.
AMD Jan Monthly (1/15) 92.50 Put
Current Stock Price: $90.47
Cash in Hand: $1.01
- Buy to close the AMD Jan Monthly (1/15) 92.50 Put for around $2.17
- Sell to open the AMD Jan Week Four (1/22) 90.50 Put for around $2.27
- Set initial credit limit at $0.10, but adjust as needed to roll today
New Cash in Hand: $1.11
CROX Jan Monthly (1/15) 75 Put
Current Stock Price: $75.53
Cash in Hand: $0.75
Action: Buy to close the CROX Jan Monthly (1/15) 75 Put for around $0.50, but adjust as needed to close today
Profit: $0.25, or $25 per contract