Lyft (LYFT) and Marvell Technology (MRVL) sold off this week with the tech sector. Both stocks are significantly oversold and undervalued.
I am recommending we roll our puts out two weeks to generate more income and buy ourselves some time for the stocks to rebound.
LYFT Apr Week Two (4/8) 36.50 Put
Current Stock Price: $34.24
Cash in Hand: $0.33
Action:
- Buy to close the LYFT Apr Week Two (4/8) 36.50 Put for around $2.40
- Sell to open the LYFT Apr Week Four (4/22) 36.50 Put for around $2.88
- Set your initial credit limit at $0.48, but adjust as needed to roll today
New Cash in Hand: $0.81
Expiration: After the close on Friday, April 22
Potential Rate of Return: 2.2% in 18 days, or 45% annualized, if this option expires worthless
MRVL Apr Week Two (4/8) 71 Put
Current Stock Price: $64.96
Cash in Hand: $0.91
Action:
- Buy to close the MRVL Apr Week Two (4/8) 71 Put for around $6.15
- Sell to open the MRVL Apr Week Four (4/22) 71 Put for around $6.65
- Set your initial credit limit at $0.50, but adjust as needed to roll today
New Cash in Hand: $1.41
Expiration: After the close on Friday, April 22
Potential Rate of Return: 2% in 25 days, or 29% annualized, if this option expires worthless