Let’s take advantage of today’s rally in Devon Energy (DVN) to book fast profits on our put position. In addition to earning a solid annualized rate of return, this will remove some risk before the long weekend and free up capital for new trades next week.
Current Stock Price: $70.60
Cash in Hand: $0.70
Action: Buy to close the DVN Sep Week Two (9/9) 64 Put
Current Option Price: $0.42-$0.48
Recommended Limit: Set your initial limit order at $0.45, but adjust as needed to close today
Profit: $0.25, or $25 per contract
Rate of Return: 0.4% in four days, or 36% on an annualized basis