The premium on our Lowe’s (LOW) bull put spread has fallen to a nickel. Let’s book profits now rather than risk a late-week reversal.
By closing today, we’ll earn 2.3% in just two days, or 414% annualized.
Current Stock Price: $199.88
Cash in Hand: $0.22
- Buy to close the LOW Oct Week One (10/7) 187.50 Put for around $0.09
- Sell to close the LOW Oct Week One (10/7) 180 Put for around $0.04
- Set initial debit limit at $0.05, but adjust as needed to close today
Profit: $0.17, or $17 per spread