Let’s book fast profits on core stock Marvell Technology (MRVL).
I am also recommending we roll our Micron Technology (MU) put. This is a recovery position, and the income we generate from rolling will turn our net debit into cash in hand.
MRVL Dec Week Two (12/10) 85 Put
Current Stock Price: $91.52
Cash in Hand: $0.43
Action: Buy to close the MRVL Dec Week Two (12/10) 85 Put
Current Option Price: $0.05-$0.12
Recommended Limit: Set your initial limit order at $0.09, but adjust as needed to close today
Profit: $0.34, or $34 per contract
Rate of Return: 0.4% in three days, or 49% on an annualized basis
MU Dec Week Two (12/10) 85 Put
Current Stock Price: $86.18
Net Debit: $0.40
Action:
- Buy to close the MU Dec Week Two (12/10) 85 Put for around $0.46
- Sell to open the MU Dec Monthly (12/17) 85 Put for around $1.54
- Set initial credit limit at $1.08, but adjust as needed to roll today
New Cash in Hand: $0.68
Expiration: After the close on Friday, Dec. 17
Potential Rate of Return: 0.8% in 267 days, or 1% annualized, if this option expires worthless