Let’s book a modest profit on our Bristol-Myers Squibb (BMY) put. Remember that we put the position on during a big up day. I’d rather play it safe by closing now than risk having to roll it out a week in an uncertain market.
Current Stock Price: $70.49
Cash in Hand: $0.47
Action: Buy to close the BMY Oct Week One (10/7) 70 Put
Current Option Price: $0.32-$0.36
Recommended Limit: Set your initial limit order at $0.34, but adjust as needed to close today
Profit: $0.13, or $13 per contract
Rate of Return: 0.2% in three days, or 23% on an annualized basis