I am recommending we roll our Apple (AAPL), General Motors (GM) and Marvell Technology Group (MRVL) puts to buy time and generate more income.
AAPL Feb Monthly (2/19) 136 Put
Current Stock Price: $128.75
Cash in Hand: $2.16
Action:
- Buy to close the AAPL Feb Monthly (2/19) 136 Put for around $7.25
- Sell to open the AAPL Feb Week Four (2/26) 136 Put for around $7.50
- Set your initial credit limit at $0.25, but adjust as needed to roll today
New Cash in Hand: $2.41
Expiration: After the close on Friday, Feb. 26
Potential Rate of Return:1.8% in 18 days, or 36% on an annualized basis, if this option expires worthless
GM Feb Monthly (2/19) 52.50 Put
Current Stock Price: $52.02
Cash in Hand: $1.25
Action:
- Buy to close the GM Feb Monthly (2/19) 52.50 Put for around $0.73
- Sell to open the GM Feb Week Four (2/26) 52 Put for around $1.21
- Set your initial credit limit at $0.48, but adjust as needed to roll today
New Cash in Hand: $1.73
Expiration: After the close on Friday, Feb. 26
Potential Rate of Return: 3.3% in 17 days, or 71% on an annualized basis, if this option expires worthless
MRVL Feb Monthly (2/19) 52.50 Put
Current Stock Price: $50.42
Cash in Hand: $0.42
Action:
- Buy to close the MRVL Feb Monthly (2/19) 52.50 Put for around $2.12
- Sell to open the MRVL Feb Week Four (2/26) 52.50 Put for around $2.70
- Set your initial credit limit at $0.58, but adjust as needed to roll today
New Cash in Hand: $1
Expiration: After the close on Friday, Feb. 26
Potential Rate of Return: 1.9% in 25 days, or 28% on an annualized basis, if this option expires worthless