I am recommending we roll our Citigroup (C) and General Motors (GM) puts out two weeks and to lower strike prices to generate more income and reduce our net debit on the positions.
You can enter the second leg of today’s trades even if you were not in the previous ones. Just be aware that we will be managing and tracking them based on the ongoing positions.
C Aug Monthly (8/19) 53 Put
Current Stock Price: $53.30
Net Debit: $14.40
Action:
- Buy to close the C Aug Monthly (8/19) 53 Put for around $0.25
- Sell to open the C Sep Week One (9/2) 52 Put for around $0.65
- Set your initial credit limit at $0.40, but adjust as needed to roll today
New Net Debit: $14
Expiration: After the close on Friday, Sept. 2
Potential Rate of Return: I am targeting breakeven for this position.
GM Aug Monthly (8/19) 37 Put
Current Stock Price: $38.45
Net Debit: $11.31
Action:
- Buy to close the GM Aug Monthly (8/19) 37 Put for around $0.05
- Sell to open the GM Sep Week One (9/2) 36 Put for around $0.37
- Set your initial credit limit at $0.32, but adjust as needed to roll today
New Net Debit: $10.99
Expiration: After the close on Friday, Sept. 2
Potential Rate of Return: I am targeting breakeven for this position