DICK’S Sporting Goods (DKS) has fallen about 3.5% since we entered the position one week ago, with the share price dipping below our put’s strike.
Let’s roll our put out two weeks and to a lower strike to avoid possible assignment, reduce our exposure to the stock and generate more income.
Note that this trade is only for members currently in the position.
Current Stock Price: $130.69
Cash in Hand: $0.68
- Buy to close the DKS 7 Jul 131 Put for around $1.25
- Sell to open the DKS 21 Jul 129 Put for around $2.05
- Set initial net credit limit at $0.80, but adjust as needed to roll today
New Cash in Hand: $1.48
New Target Exit Price: $0.75