I am recommending we roll our Delta Air Lines (DAL) and The Trade Desk (TTD) puts out one week and to lower strike prices.
This will reduce our exposure and hopefully buy us the necessary time to exit the positions at a profit next week.
DAL Aug Week Four (8/26) 33 Put
Current Stock Price: $32.69
Cash in Hand: $0.35
Action:
- Buy to close the DAL Aug Week Four (8/26) 33 Put for around $0.72
- Sell to open the DAL Sep Week One (9/2) 32.50 Put for around $0.81
- Set your initial credit limit at $0.09, but adjust as needed to roll today
New Cash in Hand: $0.44
Expiration: After the close on Friday, Sept. 2
Potential Rate of Return: 1.4% in 18 days, or 27% annualized, if this put expires worthless
TTD Aug Week Four (8/26) 63 Put
Current Stock Price: $63.84
Cash in Hand: $0.54
Action:
- Buy to close the TTD Aug Week Four (8/26) 63 Put for around $1.34
- Sell to open the TTD Sep Week One (9/2) 60 Put for around $1.43
- Set your initial credit limit at $0.09, but adjust as needed to roll today
New Cash in Hand: $0.63
Expiration: After the close on Friday, Sept. 2
Potential Rate of Return: 1.1% in 18 days, or 21% annualized, if this put expires worthless