We have a nice profit on our Micron Technology (MU) protective put. However, I want to keep a hedge in place. Therefore, I am recommending we roll it out one week and to a lower strike.
The profit we do pocket will reduce your net debit or cost basis on the position depending on whether you sold the put or the call.
Note: No action is needed on the MU Jun Monthly (6/17) 70 Put or MU Jun Monthly (6/17) 72 Call at this time.
Current Stock Price: $55.30
Cash in Hand (Put Position): $0.04
Cost Basis (Call Position): $73.41
- Sell to close the MU Jun Monthly (6/17) 56 Put for around $1.29
- Buy to open the MU Jun Week Four (6/24) 53.50 Put for around $1.19
- Set initial credit limit at $0.10, but adjust as needed to roll today
New Cash in Hand (Put Position): $0.14
New Cost Basis (Call Position): $73.31