I am recommending we spend a little cash to roll our General Motors (GM) put out one week and to a lower strike price to reduce our risk and buy time for the stock to move higher.
Note that this trade is only for members already in the position.
Current Stock Price: $35.62
Net Debit: $10.44
- Buy to close the GM May Week Four (5/27) 36.50 Put for around $1.13
- Sell to open the GM Jun Week One (6/3) 35.50 Put for around $1.03
- Set your initial debit limit at $0.10, but adjust as needed to roll today
New Net Debit: $10.54
Expiration: After the close on Friday, June 3
Potential Rate of Return: I am targeting breakeven for this position