Mosaic Company (MOS) continues to sell off this week and our protective put is in the money. I am recommending we roll it out one week and to a lower strike. This will allow us to pocket some income, reducing our cost basis on the position, while keeping our hedge in place.
Note: No action is needed on the MOS Jul Week One (7/1) 53 Call at this time.
Current Stock Price: $46.16
Cost Basis: $64.57
- Sell to close the MOS Jun Week Four (6/24) 50 Put for around $3.85
- Buy to open the MOS Jul Week One (7/1) 45 Put for around $1.31
- Set initial credit limit at $2.54, but adjust as needed to roll today
New Cost Basis: $62.03