I am recommending we roll our General Motors (GM) and Micron Technology (MU) puts. The income we generate from rolling will reduce our net debits as we work our way toward breakeven.
I am also recommending we roll our Pfizer (PFE) call to reduce our cost basis.
GM Oct Week Two (10/8) 52 Put
Current Stock Price: $55.33
Net Debit: $3.31
Action:
- Buy to close the GM Oct Week Two (10/8) 52 Put for around $0.03
- Sell to open the GM Oct Monthly (10/15) 54 Put for around $0.53
- Set your initial credit limit at $0.50, but adjust as needed to roll today
New Net Debit: $2.81
Expiration: After the close on Friday, Oct. 15
Potential Rate of Return: I am targeting breakeven for this position
MU Oct Week Two (10/8) 71 Put
Current Stock Price: $71.50
Net Debit: $5.94
Action:
- Buy to close the MU Oct Week Two (10/8) 71 Put for around $0.40
- Sell to open the MU Oct Monthly (10/15) 71 Put for around $1.01
- Set your initial credit limit at $0.61, but adjust as needed to roll today
New Net Debit: $5.33
Expiration: After the close on Friday, Oct. 15
Potential Rate of Return: I am targeting breakeven for this position
PFE Oct Week Two (10/8) 44 Call
Current Stock Price: $42.78
Cost Basis: $47.42
Action:
- Buy to close the PFE Oct Week Two (10/8) 44 Call for around $0.02
- Sell to open the PFE Oct Monthly (10/15) 43 Call for around $0.49
- Set your initial credit limit at $0.47, but adjust as needed to roll today
New Cost Basis: $46.95
Expiration: After the close on Friday, Oct. 15
Potential Rate of Return: I am targeting breakeven for this position