I am recommending we roll our CVS Health (CVS) put to buy ourselves some more time and bring in additional income.
And let’s book profits on our SPDR S&P Regional Banking ETF (KRE) position.
CVS Apr Week Two (4/9) 75 Put
Current Stock Price: $73.85
Cash in Hand: $0.73
Action:
- Buy to close the CVS Apr Week Two (4/9) 75 Put for around $1.19
- Sell to open the CVS Apr Monthly (4/16) 75 Put for around $1.51
- Set your initial credit limit at $0.32, but adjust as needed to roll today
New Cash in Hand: $1.05
Expiration: After the close on Friday, April 16
Potential Rate of Return: 1.4 % in 11 days, or 46% annualized, if this option expires worthless
KRE Apr Week Two (4/9) 66 Put
Current Stock Price: $66.99
Cash in Hand: $0.61
Action: Buy to close the KRE Apr Week Two (4/9) 66 Put
Current Option Price: $0.05-$0.07
Recommended Limit: Set your initial limit order at $0.06, but adjust as needed to close today
Profit: $0.55, or $55 per contract
Rate of Return: 0.8% in four days, or 76% on an annualized basis