I am recommending we roll our Bank of America (BAC) put out two weeks to buy time and generate more income.
Current Stock Price: $46.20
Cash in Hand: $0.42
Action:
- Buy to close the BAC Feb Monthly (2/18) 48 Put for around $1.85
- Sell to open the BAC Mar Week One (3/4) 48 Put for around $2.40
- Set your initial credit limit at $0.55, but adjust as needed to roll today
New Cash in Hand: $0.97
Expiration: After the close on Friday, March 4
Potential Rate of Return: 2% in 25 days, or 30% annualized, if this option expires worthless