I am recommending we roll our Bank of America (BAC) put to generate more income.
Let’s also book fast profits on our Marvell Technology (MRVL) put.
BAC Oct Week One (10/1) 42.50 Put
Current Stock Price: $42.54
Cash in Hand: $0.05
Action:
- Buy to close the BAC Oct Week One (10/1) 42.50 Put for around $0.32
- Sell to open the BAC Oct Week Two (10/8) 42.50 Put for around $0.72
- Set your initial credit limit at $0.40, but adjust as needed to roll today
New Cash in Hand: $0.45
Expiration: After the close on Friday, Oct. 8
Potential Rate of Return: 1.1% in 123 days, or 3% annualized, if this option expires worthless
MRVL Oct Week One (10/1) 60 Put
Current Stock Price: $60.84
Cash in Hand: $0.56
Action: Buy to close the MRVL Oct Week One (10/1) 60 Put for around $0.30, but adjust as needed to close today
Profit: $0.26, or $26 per contract
Rate of Return: 0.4% in three days, or 53% on an annualized basis