I am recommending we roll our General Motors (GM) put, as well as our Pfizer (PFE) and Sonos (SONO) calls. The income we generate will reduce our net debit/cost basis on the positions as we work our way toward breakeven.
GM Oct Monthly (10/15) 54 Put
Current Stock Price: $58.06
Net Debit: $2.81
Action:
- Buy to close the GM Oct Monthly (10/15) 54 Put for around $0.02
- Sell to open the GM Oct Week Four (10/22) 57 Put for around $0.66
- Set your initial credit limit at $0.64, but adjust as needed to roll today
New Net Debit: $2.17
Expiration: After the close on Friday, Oct. 22
Potential Rate of Return: I am targeting breakeven for this position
PFE Oct Monthly (10/15) 43 Call
Current Stock Price: $41.85
Cost Basis: $46.95
Action:
- Buy to close the PFE Oct Monthly (10/15) 43 Call for around $0.03
- Sell to open the PFE Oct Week Four (10/22) 42.50 Call for around $0.28
- Set initial credit limit at $0.25, but adjust as needed to roll today
New Cost Basis: $46.70
Expiration: After the close on Friday, Oct. 22
Potential Rate of Return: I am targeting breakeven for this position
SONO Oct Monthly (10/15) 33 Call
Current Stock Price: $32.02
Cost Basis: $36.41
Action:
- Buy to close the SONO Oct Monthly (10/15) 33 Call for around $0.09
- Sell to open the SONO Oct Week Four (10/22) 33 Call for around $0.36
- Set initial credit limit at $0.27, but adjust as needed to roll today
New Cost Basis: $36.14
Expiration: After the close on Friday, Oct. 22
Potential Rate of Return: I am targeting breakeven for this position