I am recommending we roll our Microsoft (MSFT) bull put spread out one week and to lower strikes to avoid assignment and give the stock a chance to recover.
We are also widening the spread from 5 points to 10 points, which will require you to put up more capital. However, it will also allow us to generate more income on the new spread.
Current Stock Price: $285.83
Cash in Hand: $0.28
- Buy to close the MSFT Apr Monthly (4/14) 292.50 Put for around $7.10
- Sell to close the MSFT Apr Monthly (4/14) 287.50 Put for around $3
- Set initial debit limit at $4.10, but adjust as needed to close today
- Sell to open the MSFT Apr Week Four (4/22) 270 Put for around $1.04
- Buy to open the MSFT Apr Week Four (4/22) 260 Put for around $0.41
- Set initial credit limit at $0.63, but adjust as needed to enter today
Net Debit: $3.19