I am recommending we close our Marvell Technology (MRVL) and Micron Technology (MU) puts.
We’re sitting on a tidy profit in MRVL and I’d rather not risk holding through this afternoon’s expiration.
Micron is scheduled to report earnings on Monday. I do not want to hold shares through the announcement. We will re-enter the position after the earnings dust settles, carrying over our net debit.
MRVL Dec Monthly (12/17) 82.50 Put
Current Stock Price: $83.72
Cash in Hand: $0.56
Action: Buy to close the MRVL Dec Monthly (12/17) 82.50 Put
Current Option Price: $0.17-$0.25
Recommended Limit: Set your initial limit order at $0.21, but adjust as needed to close today
Profit: $0.35, or $35 per contract
Rate of Return: 0.4% in four days, or 39% on an annualized basis
MU Dec Monthly (12/17) 85 Put
Current Stock Price: $81.40
Cash in Hand: $0.68
Action: Buy to close the MU Dec Monthly (12/17) 85 Put
Current Option Price: $3.55-$3.70
Recommended Limit: Set your initial limit order at $3.65, but adjust as needed to close today
New Net Debit: $2.97
Potential Rate of Return: I am targeting breakeven for this position