I am recommending we roll our Citigroup (C) and Pfizer (PFE) puts out one week and to higher strikes to generate more income and reduce our net debits 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 as ongoing positions.
C May Week Four (5/27) 50 Put
Current Stock Price: $52.58
Net Debit: $16.28
Action:
- Buy to close the C May Week Four (5/27) 50 Put for around $0.15
- Sell to open the C Jun Week One (6/3) 51 Put for around $0.71
- Set your initial credit limit at $0.56, but adjust as needed to roll today
New Net Debit: $15.72
Expiration: After the close on Friday, June 3
Potential Rate of Return: I am targeting breakeven for this position
PFE May Week Four (5/27) 50 Put
Current Stock Price: $53.89
Net Debit: $8.98
Action:
- Buy to close the PFE May Week Four (5/27) 50 Put for around $0.05
- Sell to open the PFE Jun Week One (6/3) 52 Put for around $0.42
- Set your initial credit limit at $0.37, but adjust as needed to roll today
New Net Debit: $8.61
Expiration: After the close on Friday, June 3
Potential Rate of Return: I am targeting breakeven for this position