First Solar (FSLR) continues to rally, up more than 15% over the past two weeks, following the passage of major climate change legislation.
Our put is well out of the money and trading for a few pennies. I am recommending we roll it out one week and to a higher strike price to generate more income and reduce our net debit on the position.
You can enter the second leg of today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $132.81
Net Debit: $6.35
- Buy to close the FSLR Sep Week Two (9/9) 110 Put for around $0.04
- Sell to open the FSLR Sep Monthly (9/16) 125 Put for around $1.98
- Set initial credit limit at $1.94, but adjust as needed to roll today
New Net Debit: $4.41