I am recommending we roll our Applied Materials (AMAT) and Starbucks (SBUX) puts out one week to buy time.
Let’s accept shares of D.R. Horton (DHI). I will recommend a call to sell against them soon.
Finally, I want to close our SPDR S&P Biotech ETF (XBI) put at a small profit.
AMAT Oct Week Two (10/8) 130 Put
Current Stock Price: $127.31
Cash in Hand: $2.52
Action:
- Buy to close the AMAT Oct Week Two (10/8) 130 Put for around $2.70
- Sell to open the AMAT Oct Monthly (10/15) 130 Put for around $3.75
- Set initial credit limit at $1.05, but adjust as needed to roll today
New Cash in Hand: $3.57
DHI Oct Week Two (10/8) 88 Put
Current Stock Price: $83.38
Cash in Hand: $1.41
Action: Accept shares
Cost Basis $86.59
SBUX Oct Week Two (10/8) 114 Put
Current Stock Price: $112.20
Cash in Hand: $1.47
Action:
- Buy to close the SBUX Oct Week Two (10/8) 114 Put for around $1.84
- Sell to open the SBUX Oct Monthly (10/15) 114 Put for around $2.25
- Set initial credit limit at $0.41, but adjust as needed to roll today
New Cash in Hand: $1.88
XBI Oct Week Two (10/8) 125 Put
Current Stock Price: $123.81
Cash in Hand: $1.36
Action: Buy to close the XBI Oct Week Two (10/8) 125 Put for around $1.28, but adjust as needed to close today
Profit: $0.08, or $8 per contract