Our Bank of America (BAC) shares were called away at a loss at the end of August. However, as I said then, I want to continue the position to work our way back toward breakeven.
Therefore, I am recommending a put to sell today. The income we generate will reduce our net debit on the position.
You can enter today’s trade even if you were not in the previous one. Just be aware that we will be tracking and managing the trade based on the ongoing position.
Current Stock Price: $40.81
Net Debit: $1.50
Action: Sell to open the BAC Sep Monthly (9/17) 40.50 Put
Current Option Price: $0.52-$0.53
Recommended Limit: Set your initial credit limit at $0.52, but adjust as needed to sell a put today
New Net Debit: $0.98
Expiration: After the close on Friday, Sept. 17
Potential Rate of Return: I am targeting breakeven for this position