Chewy (CHWY) is holding above $100, but I do not want to risk being assigned shares given current market conditions. Let’s book a large profit now.
Current Stock Price: $102.51
Cash in Hand: $2.22
Action: Buy to close the CHWY Jan Week Five (1/29) 100 Put
Current Option Price: $0.41-$0.53
Recommended Limit: Set your initial limit order at $0.47, but adjust as needed to close today
Profit: $1.75, or $175 per contract
Rate of Return: 1.8% in 11 days, or 58% on an annualized basis