I am recommending we roll our Bank of America (BAC) and Citigroup (C) puts out one week and to higher strike prices to generate more income
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 Oct Week Four (10/28) 33.50 Put
Current Stock Price: $35.68
Net Debit: $9.77
Action:
- Buy to close the BAC Oct Week Four (10/28) 33.50 Put for around $0.02
- Sell to open the BAC Nov Week One (11/4) 35 Put for around $0.49
- Set your initial credit limit at $0.47, but adjust as needed to roll today
New Net Debit: $9.30
Expiration: After the close on Friday, Nov. 4
Potential Rate of Return: I am targeting breakeven for this position
C Oct Week Four (10/28) 42 Put
Current Stock Price: $45.46
Net Debit: $22.56
Action:
- Buy to close the C Oct Week Four (10/28) 42 Put for around $0.02
- Sell to open the C Nov Week One (11/4) 45 Put for around $0.99
- Set your initial credit limit at $0.97, but adjust as needed to roll today
New Net Debit: $21.59
Expiration: After the close on Friday, Nov. 4
Potential Rate of Return: I am targeting breakeven for this position