I am recommending we roll our General Motors (GM) put out one week to avoid potential assignment and generate more income.
Current Stock Price: $37.38
Net Debit: $10.06
Action:
- Buy to close the GM Dec Monthly (12/16) 38 Put for around $0.76
- Sell to open the GM Dec Week Four (12/23) 38 Put for around $1.13
- Set your initial credit limit at $0.37, but adjust as needed to roll today
New Net Debit: $9.69
Expiration: After the close on Friday, Dec. 23
Potential Rate of Return: I am targeting breakeven for this position