Let’s book profits on our Bank of America (BAC) and Charles Schwab (SCHW) positions, earning excellent rates of return and freeing up capital for new trades.
BAC May Monthly (5/21) 41 Put
Current Stock Price: $42.79
Cash in Hand: $0.57
Action: Buy to close the BAC May Monthly (5/21) 41 Put
Current Option Price: $0.06-$0.07
Recommended Limit: Set your initial limit order at $0.07, but adjust as needed to close today
Profit: $0.50, or $50 per contract
Rate of Return: 1.2% in eight days, or 56% on an annualized basis
SCHW May Monthly (5/21) 70 Call
Current Stock Price: $72.92
Cost Basis $67.36
Action:
- Buy to close the SCHW May Monthly (5/21) 70 Call for around $3.10, but adjust as needed to close today
- Sell shares at market
Profit: $2.46, or $246 per contract
Rate of Return: 3.6% in 22 days, or 59% on an annualized basis