Let’s book profits on our Bank of America (BAC) position.
Current Stock Price: $33.10
Cash in Hand: $0.70
Action: Buy to close the BAC Feb Week Two (2/12) 32.50 Put
Current Option Price: $0.06-$0.07
Recommended Limit: Set your initial limit order at $0.06, but adjust as needed to close today
Profit: $0.64, or $64 per contract
Rate of Return: 2% in 24 days, or 30% on an annualized basis