Let’s book profits on our Danaher (DHR) bull put spread, earning a 6.5% return in 17 days, or 125% annualized.
While we will be giving back a good deal of premium, there’s too much cash on the table to leave the trade open for another two weeks. Plus, we’ll be freeing up capital for Income Madness, which kicks off Dec. 6.
Current Stock Price: $273.36
Cash in Hand: $1.10
- Buy to close the DHR Dec Monthly (12/16) 250 Put for around $1.10
- Sell to close the DHR Dec Monthly (12/16) 240 Put for around $0.58
- Set initial debit limit at $0.52, but adjust as needed to close today
Profit: $0.58, or $58 per spread