Let’s book profits on our Delta Air Lines (DAL) put, earning an excellent annualized rate of return and freeing up capital for new trades.
Current Stock Price: $31.65
Cash in Hand: $0.36
Action: Buy to close the DAL Oct Monthly (10/21) 29.50 Put
Current Option Price: $0.12-$0.13
Recommended Limit: Set your initial limit order at $0.13, but adjust as needed to close today
Profit: $0.23, or $23 per contract
Rate of Return: 0.8% in five days, or 57% on an annualized basis