I am recommending we roll our positions in Apple (AAPL), Gilead Sciences (GILD) and General Motors (GM) out one week.
AAPL Feb Week Two (2/12) 136 Put
Current Stock Price: $135.20
Cash in Hand: $1.06
Action:
- Buy to close the AAPL Feb Week Two (2/12) 136 Put for around $1.36
- Sell to open the AAPL Feb Monthly (2/19) 136 Put for around $2.46
- Set your initial credit limit at $1.10, but adjust as needed to roll today
New Cash in Hand: $2.16
Expiration: After the close on Friday, Feb. 19
Potential Rate of Return: 1.6% in 11 days, or 53% on an annualized basis, if this option expires worthless
GILD Feb Week Two (2/12) 67 Put
Current Stock Price: $66.42
Cash in Hand: $0.47
Action:
- Buy to close the GILD Feb Week Two (2/12) 67 Put for around $0.85
- Sell to open the GILD Feb Monthly (2/19) 67 Put for around $1.30
- Set your initial credit limit at $0.45, but adjust as needed to roll today
New Cash in Hand: $0.92
Expiration: After the close on Friday, Feb. 19
Potential Rate of Return: 1.4% in 11 days, or 46% on an annualized basis, if this option expires worthless
GM Feb Week Two (2/12) 52.50 Put
Current Stock Price: $53.01
Cash in Hand: $0.47
Action:
- Buy to close the GM Feb Week Two (2/12) 52.50 Put for around $0.23
- Sell to open the GM Feb Monthly (2/19) 52.50 Put for around $1.01
- Set your initial credit limit at $0.78, but adjust as needed to roll today
New Cash in Hand: $1.25
Expiration: After the close on Friday, Feb. 19
Potential Rate of Return: 2.4% in 10 days, or 87% on an annualized basis, if this option expires worthless