I am recommending we close our Gilead Sciences (GILD) put with a tidy profit.
And let’s roll our Micron Technology (MU) put out two weeks. I anticipate the stock bouncing back toward our strike price.
GILD Oct Monthly (10/15) 67.50 Put
Current Stock Price: $68.25
Cash in Hand: $0.44
Action: Buy to close the GILD Oct Monthly (10/15) 67.50 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: $0.38, or $38 per contract
Rate of Return: 0.6% in four days, or 51% on an annualized basis
MU Oct Monthly (10/15) 71 Put
Current Stock Price: $68.11
Net Debit: $5.33
Action:
- Buy to close the MU Oct Monthly (10/15) 71 Put for around $2.95
- Sell to open the MU Oct Week Five (10/29) 71 Put for around $3.25
- Set your initial credit limit at $0.30, but adjust as needed to roll today
New Net Debit: $5.03
Expiration: After the close on Friday, Oct. 22
Potential Rate of Return: I am targeting breakeven for this position