CVS Health (CVS) delivered strong second-quarter results today and raised its outlook for the year. The stock is rallying, but investor enthusiasm did not spill over to competitor Walgreens Boots Alliance (WBA).
I am recommending we roll our WBA put out two weeks and to a lower strike to generate more income and reduce our net debit on the position.
Current Stock Price: $39.03
Net Debit: $6.96
- Buy to close the WBA Aug Week One (8/5) 39 Put for around $0.33
- Sell to open the WBA Aug Monthly (8/19) 38.50 Put for around $0.77
- Set initial credit limit at $0.44, but adjust as needed to roll today
New Net Debit: $6.52