I am recommending we roll our Bank of America (BAC), Citigroup (C) and General Motors (GM) puts out two weeks and to higher strike prices 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 Nov Monthly (11/18) 35 Put
Current Stock Price: $37.25
Net Debit: $8.77
Action:
- Buy to close the BAC Nov Monthly (11/18) 35 Put for around $0.02
- Sell to open the BAC Dec Week One (12/2) 36 Put for around $0.43
- Set your initial credit limit at $0.41, but adjust as needed to roll today
New Net Debit: $8.36
Expiration: After the close on Friday, Dec. 2
Potential Rate of Return: I am targeting breakeven for this position
C Nov Monthly (11/18) 45 Put
Current Stock Price: $48.29
Net Debit: $20.96
Action:
- Buy to close the C Nov Monthly (11/18) 45 Put for around $0.04
- Sell to open the C Dec Week One (12/2) 47 Put for around $0.64
- Set your initial credit limit at $0.60, but adjust as needed to roll today
New Net Debit: $20.36
Expiration: After the close on Friday, Dec. 2
Potential Rate of Return: I am targeting breakeven for this position
GM Nov Monthly (11/18) 37 Put
Current Stock Price: $38.70
Net Debit: $11.54
Action:
- Buy to close the GM Nov Monthly (11/18) 37 Put for around $0.24
- Sell to open the GM Dec Week One (12/2) 38 Put for around $1.12
- Set your initial credit limit at $0.88, but adjust as needed to roll today
New Net Debit: $10.66
Expiration: After the close on Friday, Dec. 2
Potential Rate of Return: I am targeting breakeven for this position