I am recommending we roll our Starbucks (SBUX) put out two weeks to bring in more income and reduce our net debit.
Our Williams-Sonoma (WSM) shares are on track to be called away after a sharp move higher. Of course, this came after a sharp drop that prompted us to roll our call strike down 10 points.
Being called out at $105 instead of $115 falls somewhere between frustrating and infuriating. But as I always preach, there is no such thing as a foregone profit.
Considering we are exiting with a profit on a position that was well underwater at one point, I consider this a win.
SBUX Jan Monthly (1/15) 103 Put
Current Stock Price: $102.14
Net Debit: $4.03
- Buy to close the SBUX Jan Monthly (1/15) 103 Put for around $0.95
- Sell to open the SBUX Jan Week Five (1/29) 103 Put for around $3.10
- Set initial credit limit at $2.15
New Net Debit: $1.88
WSM Jan Monthly (1/15) 105 Call
Current Stock Price: $122.77
Cost Basis: $103.05
Action: Allow shares to be called away
Profit: $1.95, or $195 per 100 shares