Best Buy (BBY) has shown strength over the past month, as big-box retailers have signaled in recent earnings reports that the worst of it may be behind them.
I am recommending we roll our put out one week to generate more income and reduce our net debit on the position.
Note that the company is scheduled to announce earnings on Aug. 30. We will either sit that week out or buy a protective put to hedge our position against a possible post-earnings sell-off.
Current Stock Price: $79.62
Net Debit: $20.24
- Buy to close the BBY Aug Monthly (8/19) 75 Put for around $0.02
- Sell to open the BBY Aug Week Four (8/26) 75 Put for around $0.40
- Set initial credit limit at $0.38, but adjust as needed to roll today
New Net Debit: $19.86