Today’s market runup gives us the opportunity to book excellent short-term profits on Bank of America (BAC) and General Motors (GM). We will likely trade these names again soon.
BAC Jan Week Two (1/8) 30 Put
Current Stock Price: $32.36
Cash in Hand: $0.42
Action: Buy to close the BAC Jan Week Two (1/8) 30 Put
Current Option Price: $0.02-$0.03
Recommended Limit: Set your initial limit order at $0.03, but adjust as needed to close today
Profit: $0.39, or $39 per contract
Rate of Return: 1.3 % in two days, or 237% on an annualized basis
GM Jan Week Two (1/8) 40 Put
Current Stock Price: $42.94
Cash in Hand: $0.38
Action: Buy to close the GM Jan Week Two (1/8) 40 Put
Current Option Price: $0.04-$0.05
Recommended Limit: Set your initial limit order at $0.05, but adjust as needed to close today
Profit: $0.33, or $33 per contract
Rate of Return: 0.8% in two days, or 151% on an annualized basis