I am recommending we roll our Citigroup (C) put out two weeks to avoid assignment and more than double our cash in hand.
Current Stock Price: $71.57
Cash in Hand: $0.71
Action:
- Buy to close the C Oct Week Four (10/22) 72 Put for around $0.53
- Sell to open the C Nov Week One (11/5) 72 Put for around $1.75
- Set initial credit limit at $1.22, but adjust as needed to roll today
New Cash in Hand: $1.93
Expiration: After the close on Friday, Nov. 5
Potential Rate of Return: 2.7% in 18 days, or 54% annualized, if this option expires worthless