We have positions in Citigroup (C) and Marvell Technology (MRVL) expiring today.
I am recommending we allow our Citigroup shares to be called away given that the company is scheduled to report earnings next week. We will sell a put after the announcement to reduce our net debit on the position.
And let’s close MRVL now with a decent profit rather than risk rolling out a week.
C Jan Week One (1/7) 61 Call
Current Stock Price: $66.06
Cost Basis: $66.77
Action: Allow shares to be called away
Net Debit: $5.77
MRVL Jan Week One (1/7) 85 Put
Current Stock Price: $85.53
Cash in Hand: $0.69
Action: Buy to close the MRVL Jan Week One (1/7) 85 Put
Current Option Price: $0.36-$0.41
Recommended Limit: Set your initial limit order at $0.39, but adjust as needed to close today
Profit: $0.30, or $30 per contract
Rate of Return: 0.4% in four days, or 32% on an annualized basis