I am recommending we roll our General Motors (GM), Micron Technology (MU) and Pfizer (PFE) puts out two weeks, as trading will be light next week due to the Thanksgiving holiday. The income we generate will reduce our net debits on these recovery positions.
Note that we are rolling the PFE put to a significantly higher strike. With several catalysts on the horizon, including the possibility of expanded eligibility for it COVID-19 vaccine booster shots and authorization of its experimental COVID-19 pill, I want to trade it aggressively.
GM Nov Monthly (11/19) 59 Put
Current Stock Price: $64.26
Net Debit: $0.56
Action:
- Buy to close the GM Nov Monthly (11/19) 59 Put for around $0.04
- Sell to open the GM Dec Week One (12/3) 60 Put for around $0.56
- Set your initial credit limit at $0.52, but adjust as needed to roll today
New Net Debit: $0.04
Expiration: After the close on Friday, Dec. 3
Potential Rate of Return: I am targeting breakeven for this position
MU Nov Monthly (11/19) 72.50 Put
Current Stock Price: $75.86
Net Debit: $3.16
Action:
- Buy to close the MU Nov Monthly (11/19) 72.50 Put for around $0.07
- Sell to open the MU Dec Week One (12/3) 72.50 Put for around $0.86
- Set your initial credit limit at $0.79, but adjust as needed to roll today
New Net Debit: $2.37
Expiration: After the close on Friday, Dec. 3
Potential Rate of Return: I am targeting breakeven for this position
PFE Nov Monthly (11/19) 45 Put
Current Stock Price: $50.39
Net Debit: $2.48
Action:
- Buy to close the PFE Nov Monthly (11/19) 45 Put for around $0.01
- Sell to open the PFE Dec Week One (12/3) 50 Put for around $1
- Set your initial credit limit at $0.99, but adjust as needed to roll today
New Net Debit: $1.49
Expiration: After the close on Friday, Dec. 3
Potential Rate of Return: I am targeting breakeven for this position