I am recommending we roll our Lyft (LYFT) and Marvell Technology (MRVL) puts to avoid potential assignment and generate more income.
LYFT Apr Week Four (4/22) 36.50 Put
Current Stock Price: $36.03
Cash in Hand: $0.81
Action:
- Buy to close the LYFT Apr Week Four (4/22) 36.50 Put for around $0.77
- Sell to open the LYFT Apr Week Five (4/29) 36.50 Put for around $1.31
- Set your initial credit limit at $0.54, but adjust as needed to roll today
New Cash in Hand: $1.35
Expiration: After the close on Friday, April 29
Potential Rate of Return: 3.7% in 25 days, or 54% annualized, if this option expires worthless
MRVL Apr Week Four (4/22) 71 Put
Current Stock Price: $63.56
Cash in Hand: $1.41
Action:
- Buy to close the MRVL Apr Week Four (4/22) 71 Put for around $7.35
- Sell to open the MRVL May Week One (5/6) 71 Put for around $7.70
- Set initial credit limit at $0.35, but adjust as needed to roll today
New Cash in Hand: $1.76
Expiration: After the close on Friday, May 6
Potential Rate of Return: 2.5% in 39 days, or 23% annualized, if this option expires worthless