Our Taiwan Semiconductor Manufacturing (TSM) put is deep in the money, but the stock is bouncing back a bit today.
I am recommending we roll out one week rather than accept assignment. In addition to buying ourselves some time, we will pick up additional income.
Current Stock Price: $132.47
Cash in Hand: $1.97
- Buy to close the TSM Jan Monthly (1/21) 140 Put for around $7.55
- Sell to open the TSM Jan Week Four (1/28) 140 Put for around $8.20
- Set initial credit limit at $0.65, but adjust as needed to roll today
New Cash in Hand: $2.62