Lennar (LEN) is up 5% today and the premium on the put we sold has dropped by more than half in just over 24 hours. Let’s book fast profits, earning a nice annualized rate of return.
Current Stock Price: $77.10
Cash in Hand: $0.30
Action: Buy to close the LEN Sep Week Five (9/30) 70 Put
Current Option Price: $0.10-$0.15
Recommended Limit: Set your initial limit order at $0.13, but adjust as needed to close today
Profit: $0.17, or $17 per contract
Rate of Return: 0.2% in two days, or 44% on an annualized basis