Devon Energy (DVN) has moved back above our put’s strike today. But rather than wait for the option to expire and risk being assigned shares of this volatile energy stock, I am recommending we close it now at a modest profit.
As they say, no one ever went broke taking a profit. Plus, we free up capital for a potential new trade
Current Stock Price: $71.44
Cash in Hand: $0.75
Action: Buy to close the DVN Nov Week Two (11/11) 71 Put
Current Option Price: $0.39-$0.43
Recommended Limit: Set your initial limit order at $0.41, but adjust as needed to close today
Profit: $0.34, or $34 per contract
Rate of Return: 0.5% in 11 days, or 16% on an annualized basis