I am recommending we close our Microsoft (MSFT) and Starbucks (SBUX) positions.
There is too much cash on the table with MSFT in a trade open less than 24 hours to pass up this opportunity to book profits.
SBUX is expected to report earnings after the close and I do not want to be exposed. Therefore, I am recommending we close the position now. We will sell another put when the earnings dust settles to reduce our net debit.
MSFT Oct Week Five (10/30) 202.50 Put
Current Stock Price: $205.14
Cash in Hand: $1.50
Action: Buy to close the MSFT Oct Week Five (10/30) 202.50 Put for around $0.85
Profit: $0.65, or $65 per contract
SBUX Oct Week Five (10/30) 85 Put
Current Stock Price: $88.40
Net Debit: $11.75
Action: Buy to close the SBUX Oct Week Five (10/30) 85 Put for around $0.65
New Net Debit: $12.40