I am recommending we roll our Bank of America (BAC) put out two weeks to generate more income and reduce our net debit on the position.
You can enter the second leg of today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $34.21
Net Debit: $8.36
Action:
- Buy to close the BAC Sep Week One (9/2) 34 Put for around $0.40
- Sell to open the BAC Sep Monthly (9/16) 34 Put for around $0.93
- Set your initial credit limit at $0.53, but adjust as needed to roll today
New Net Debit: $7.83
Expiration: After the close on Friday, Sept. 16
Potential Rate of Return: I am targeting breakeven for this position