I am recommending we roll our Bank of America (BAC), Citigroup (C) and Charles Schwab (SCHW) puts 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 Two (8/12) 33 Put
Current Stock Price: $35.21
Net Debit: $9.02
Action:
- Buy to close the BAC Aug Week Two (8/12) 33 Put for around $0.03
- Sell to open the BAC Aug Week Four (8/26) 34 Put for around $0.38
- Set your initial credit limit at $0.35, but adjust as needed to roll today
New Net Debit: $8.67
Expiration: After the close on Friday, Aug. 26
Potential Rate of Return: I am targeting breakeven for this position
C Aug Week Two (8/12) 51 Put
Current Stock Price: $54.02
Net Debit: $14.88
Action:
- Buy to close the C Aug Week Two (8/12) 51 Put for around $0.04
- Sell to open the C Aug Monthly (8/19) 53 Put for around $0.52
- Set your initial credit limit at $0.48, but adjust as needed to roll today
New Net Debit: $14.40
Expiration: After the close on Friday, Aug. 19
Potential Rate of Return: I am targeting breakeven for this position
SCHW Aug Week Two (8/12) 68 Put
Current Stock Price: $69.48
Net Debit: $4.16
Action:
- Buy to close the SCHW Aug Week Two (8/12) 68 Put for around $0.25
- Sell to open the SCHW Aug Week Four (8/26) 68 Put for around $1.16
- Set your initial credit limit at $0.91, but adjust as needed to roll today
New Net Debit: $3.25
Expiration: After the close on Friday, Aug. 26
Potential Rate of Return: I am targeting breakeven for this position