I am recommending we roll our United Airlines (UAL) put out one week and to a lower strike to reduce our chances of being assigned shares.
At the current midpoints, this is a roughly cash-neutral roll, but adjust your limit accordingly to roll the put. This will hopefully buy us the necessary time to exit the position at a profit next week.
Current Stock Price: $36.67
Cash in Hand: $0.43
Action:
- Buy to close the UAL Aug Week Four (8/26) 37 Put for around $0.95
- Sell to open the UAL Sep Week One (9/2) 36 Put for around $0.96
- Set initial credit limit at $0.01, but adjust as needed to roll today
New Cash in Hand: $0.44