I am recommending we roll our Roku (ROKU) and The Trade Desk (TTD) puts out two weeks and to lower strikes.
ROKU has been holding up better than some other volatile stocks recently and is bucking the broader market decline today due to the announcement of an exclusive e-commerce deal with Walmart (WMT).
We can lower our put strike while still generating income to reduce our net debit, so that’s what we’re going to do. Our protective put is on track to expire worthless.
Our TTD protective put remains in place.
Note that the bid/ask spreads for these trades are wide, so work your limit orders.
ROKU Jun Monthly (6/17) 83 Put
ROKU Jun Monthly (6/17) 70 Put
Current Stock Price: $78.50
Net Debit: $0.92
- Buy to close the ROKU Jun Monthly (6/17) 83 Put for around $4.70
- Sell to open the ROKU Jul Week One (7/1) 80 Put for around $6.90
- Set initial credit limit at $2.20, but adjust as needed to roll today
- Watch the ROKU Jun Monthly (6/17) 70 Put expire worthless
New Cash in Hand: $1.28
TTD Jun Monthly (6/17) 50 Put
Note: No action is needed on the TTD Jun Week Four (6/24) 40 Put at this time.
Current Stock Price: $46.43
Net Debit: $2.10
- Buy to close the TTD Jun Monthly (6/17) 50 Put for around $3.70
- Sell to open the TTD Jul Week One (7/1) 49 Put for around $4.55
- Set initial credit limit at $0.85, but adjust as needed to roll today
New Net Debit: $1.25