I am recommending we roll our Bank of America (BAC) and Citigroup (C) puts out one week to generate more income and reduce our net debits on the positions.
You can enter the second leg of today’s trades even if you were not in the previous ones. Just be aware that we will be managing and tracking them based on the ongoing positions.
BAC Aug Week One (8/5) 33 Put
Current Stock Price: $33.40
Net Debit: $9.33
Action:
- Buy to close the BAC Aug Week One (8/5) 33 Put for around $0.14
- Sell to open the BAC Aug Week Two (8/12) 33 Put for around $0.45
- Set your initial credit limit at $0.31, but adjust as needed to roll today
New Net Debit: $9.02
Expiration: After the close on Friday, Aug. 12
Potential Rate of Return: I am targeting breakeven for this position
C Aug Week One (8/5) 51 Put
Current Stock Price: $51.53
Net Debit: $15.37
Action:
- Buy to close the C Aug Week One (8/5) 51 Put for around $0.23
- Sell to open the C Aug Week Two (8/12) 51 Put for around $0.72
- Set your initial credit limit at $0.49, but adjust as needed to roll today
New Net Debit: $14.88
Expiration: After the close on Friday, Aug. 12
Potential Rate of Return: I am targeting breakeven for this position