Given Roku’s (ROKU) bounce back today, I am recommending we roll our put out one week rather than accept shares. This will give the underlying stock time to move higher and allow us to pick up a good deal of cash.
Current Stock Price: $58.66
Cash in Hand: $0.74
Action:
- Buy to close the ROKU Sep Week Five (9/30) 60 Put for around $1.55
- Sell to open the ROKU Oct Week One (10/7) 60 Put for around $3.35
- Set initial credit limit at $1.80, but adjust as needed to roll today
New Cash in Hand: $2.54