I am recommending we roll our Chewy (CHWY) and Corning (GLW) puts. And let’s book profits on our JPMorgan Chase (JPM) position.
CHWY Oct Monthly (10/16) 63 Put
Current Stock Price: $63.72
Cash in Hand: $0.48
Action:
- Buy to close the CHWY Oct Monthly (10/16) 63 Put for around $0.69
- Sell to open the CHWY Oct Week Four (10/23) 62 Put for around $1.48
- Set your initial credit limit at $0.79, but adjust as needed to roll today
New Cash in Hand: $1.27
Expiration: After the close on Friday, Oct. 23
Potential Rate of Return: 2% in 11 days, or 68% on an annualized basis, if this option expires worthless
GLW Oct Monthly (10/16) 34.50 Put
Current Stock Price: $34.30
Cash in Hand: $0.49
Action:
- Buy to close the GLW Oct Monthly (10/16) 34.50 Put for around $0.36
- Sell to open the GLW Oct Week Four (10/23) 34.50 Put for around $0.72
- Set your initial credit limit at $0.36, but adjust as needed to roll today
New Cash in Hand: $0.85
Expiration: After the close on Friday, Oct. 23
Potential Rate of Return: 2.5% in 11 days, or 82% on an annualized basis, if this option expires worthless
JPM Oct Monthly (10/16) 100 Put
Current Stock Price: $101.39
Cash in Hand: $0.78
Action: Buy to close the JPM Oct Monthly (10/16) 100 Put
Current Option Price: $0.29-$0.31
Recommended Limit: Set your initial limit order at $0.30, but adjust as needed to close today
Profit: $0.48, or $48 per contract
Rate of Return: 0.5% in three days, or 59% on an annualized basis