I am recommending we roll our Marvell Technology (MRVL) put out two weeks to generate more income and reduce our net debit on this core position.
You can enter the second leg of today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $43.15
Net Debit: $16.14
Action:
- Buy to close the MRVL Mar Week Two (3/10) 42.50 Put for around $0.31
- Sell to open the MRVL Mar Week Four (3/24) 42.50 Put for around $1.41
- Set your initial credit limit at $1.10, but adjust as needed to roll today
New Net Debit: $15.04
Expiration: After the close on Friday, March 24
Potential Rate of Return: I am targeting breakeven for this position