Given today’s pop in General Motors (GM) and Marvell Technology (MRVL), I am recommending we roll our puts out one week to capture another chunk of cash.
You can enter the second leg of today’s trades even if you were not in the previous ones. Just be aware that we will be managing and tracking them based on the ongoing positions.
GM Aug Week One (8/5) 36 Put
Current Stock Price: $37.31
Net Debit: $12.08
Action:
- Buy to close the GM Aug Week One (8/5) 36 Put for around $0.10
- Sell to open the GM Aug Week Two (8/12) 36 Put for around $0.42
- Set your initial credit limit at $0.32, but adjust as needed to roll today
New Net Debit: $11.76
Expiration: After the close on Friday, Aug. 12
Potential Rate of Return: I am targeting breakeven for this position
MRVL Aug Week One (8/5) 55 Put
Current Stock Price: $57.84
Net Debit: $19.13
Action:
- Buy to close the MRVL Aug Week One (8/5) 55 Put for around $0.18
- Sell to open the MRVL Aug Week Two (8/12) 56 Put for around $1
- Set your initial credit limit at $0.82, but adjust as needed to roll today
New Net Debit: $18.31
Expiration: After the close on Friday, Aug. 12
Potential Rate of Return: I am targeting breakeven for this position