I typically like to let our bull put spreads go to expiration. But given recent market volatility, I am recommending we take profits on our Salesforce.com (CRM) and Microsoft (MSFT) spreads now.
CRM Dec Week Two (12/10) 250/245 Put Spread
Current Stock Price: $266.99
Cash in Hand: $0.64
Action:
- Buy to close the CRM Dec Week Two (12/10) 250 Put for around $0.15
- Sell to close the CRM Dec Week Two (12/10) 245 Put for around $0.08
- Set initial debit limit at $0.07, but adjust as needed to close today
Profit: $0.57, or $57 per spread
MSFT Dec Week Two (12/10) 310/305 Put Spread
Current Stock Price: $333
Cash in Hand: $0.38
Action:
- Buy to close the MSFT Dec Week Two (12/10) 310 Put for around $0.09
- Sell to close the MSFT Dec Week Two (12/10) 305 Put for around $0.06
- Set initial debit limit at $0.03, but adjust as needed to close today
Profit: $0.35, or $35 per spread