I am recommending we roll our General Motors (GM) and Lyft (LYFT) puts to avoid potential assignment and generate more income, which will reduce our net debits on the positions.
Note that these trades are only for members who are already in the positions.
GM May Monthly (5/20) 37 Put
Current Stock Price: $35.96
Net Debit: $10.72
Action:
- Buy to close the GM May Monthly (5/20) 37 Put for around $1.18
- Sell to open the GM May Week Four (5/27) 36.50 Put for around $1.46
- Set your initial credit limit at $0.28, but adjust as needed to roll today
New Net Debit: $10.44
Expiration: After the close on Friday, May 27
Potential Rate of Return: I am targeting breakeven for this position
LYFT May Monthly (5/20) 20 Put
Current Stock Price: $18.94
Net Debit: $2.27
Action:
- Buy to close the LYFT May Monthly (5/20) 20 Put for around $1.22
- Sell to open the LYFT Jun Week One (6/3) 20 Put for around $1.78
- Set your initial credit limit at $0.56, but adjust as needed to roll today
New Net Debit: $1.71
Expiration: After the close on Friday, June 3
Potential Rate of Return: I am targeting breakeven for this position