Let’s roll our Marvell Technology (MRVL) put out two weeks and to a lower strike price to avoid assignment and reduce our risk.
Current Stock Price: $39.81
Net Debit: $13.96
Action:
- Buy to close the MRVL Apr Week One (4/6) 42.50 Put for around $2.74
- Sell to open the MRVL Apr Monthly (4/21) 42 Put for around $2.85
- Set your initial credit limit at $0.11, but adjust as needed to roll today
New Net Debit: $13.85
Expiration: After the close on Friday, April 14
Potential Rate of Return: We are targeting breakeven for this position