I am recommending we roll our General Motors (GM) and Pfizer (PFE) puts to generate more income and reduce our net debits on the positions.
GM has run up over the past week, so we are going to capture more premium by rolling to a higher strike. You can enter the second leg of today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the as ongoing position.
Our PFE put is slightly in the money, so we are rolling strike to strike and out two weeks to buy ourselves some more time. This trade is only for members already in the position.
GM Jun Week One (6/3) 35.50 Put
Current Stock Price: $38.81
Net Debit: $10.54
Action:
- Buy to close the GM Jun Week One (6/3) 35.50 Put for around $0.02
- Sell to open the GM Jun Week Two (6/10) 37 Put for around $0.40
- Set your initial credit limit at $0.38, but adjust as needed to roll today
New Net Debit: $10.16
Expiration: After the close on Friday, June 10
Potential Rate of Return: I am targeting breakeven for this position
PFE Jun Week One (6/3) 52 Put
Current Stock Price: $51.17
Net Debit: $8.61
Action:
- Buy to close the PFE Jun Week One (6/3) 52 Put for around $1
- Sell to open the PFE Jun Monthly (6/17) 52 Put for around $1.69
- Set your initial credit limit at $0.69, but adjust as needed to roll today
New Net Debit: $7.92
Expiration: After the close on Friday, June 17
Potential Rate of Return: I am targeting breakeven for this position