I am recommending we roll our Nike (NKE) and United Airlines (UAL) puts out two weeks to avoid assignment, generate more cash and buy some time for shares to recover.
With UAL we will be giving back some cash to lower our strike, thus reducing our exposure.
NKE Sep Week One (9/2) 110 Put
Current Stock Price: $104.15
Net Debit: $14.70
Action:
- Buy to close the NKE Sep Week One (9/2) 110 Put for around $6.20
- Sell to open the NKE Sep Monthly (9/16) 110 Put for around $7
- Set initial credit limit at $0.80, but adjust as needed to roll today
New Net Debit: $13.90
UAL Sep Week One (9/2) 36 Put
Current Stock Price: $34.18
Cash in Hand: $0.44
Action:
- Buy to close the UAL Sep Week One (9/2) 36 Put for around $1.90
- Sell to open the UAL Sep Monthly (9/16) 34.50 Put for around $1.78
- Set initial debit limit at $0.12, but adjust as needed to roll today
New Cash in Hand: $0.32