Let’s book profits on our Advanced Micro Devices (AMD) put and roll our CVS Health (CVS) and Intel (INTC) positions for more cash.
AMD Nov Week One (11/6) 75 Put
Current Stock Price: $83.05
Cash in Hand: $1.76
Action: Buy to close the AMD Nov Week One (11/6) 75 Put
Current Option Price: $0.02-$0.03
Recommended Limit: Set initial limit order at $0.02, but adjust as needed to close today
Profit: $1.74, or $174 per contract
Rate of Return: 2.3% in 10 days, or 85% on an annualized basis
CVS Nov Week One (11/6) 60 Call
Current Stock Price: $61.96
Cost Basis: $61.57
Action:
- Buy to close the CVS Nov Week One (11/6) 60 Call for around $2.48
- Sell to open the CVS Nov Monthly (11/20) 60 Call for around $2.95
- Set your initial credit limit at $0.47, but adjust as needed to roll today
New Cost Basis: $61.10
Expiration: After the close on Friday, Nov. 20
Potential Rate of Return: I am targeting breakeven for this position
INTC Nov Week One (11/6) 45 Put
Current Stock Price: $45.96
Net Debit: $6.71
Action:
- Buy to close the INTC Nov Week One (11/6) 45 Put for around $0.14
- Sell to open the INTC Nov Week Two (11/13) 45 Put for around $0.49
- Set your initial credit limit at $0.35, but adjust as needed to roll today
New Net Debit: $6.36
Expiration: After the close on Friday, Nov. 13
Potential Rate of Return: I am targeting breakeven for this position