I am recommending we roll our positions in General Motors (GM) and Pfizer (PFE) out one week to generate more income.
While these are recovery positions, GM and PFE are also two of our core Options Income Blueprint stocks. This means we will be trading them with great frequency, as they continue to throw off a good deal of cash.
GM Oct Week One (10/1) 51 Put
Current Stock Price: $52.86
Net Debit: $4.17
Action:
- Buy to close the GM Oct Week One (10/1) 51 Put for around $0.07
- Sell to open the GM Oct Week Two (10/8) 52 Put for around $0.93
- Set initial credit limit at $0.86, but adjust as needed to roll today
New Net Debit: $3.31
Expiration: After the close on Friday, Oct. 8
Potential Rate of Return: I am targeting breakeven for this position
PFE Oct Week One (10/1) 45 Call
Current Stock Price: $43.64
Cost Basis: $47.86
Action:
- Buy to close the PFE Oct Week One (10/1) 45 Call for around $0.02
- Sell to open the PFE Oct Week Two (10/8) 44 Call for around $0.46
- Set initial credit limit at $0.44, but adjust as needed to roll today
New Cost Basis: $47.42
Expiration: After the close on Friday, Oct. 8
Potential Rate of Return: I am targeting breakeven for this position