I am recommending we roll our Marvell Technology (MRVL) put out one week simply to generate more cash.
If you do not currently have a position in this core stock, you can enter one today by selling the Nov. 19 put. Just be aware that we will be managing and tracking based on the ongoing position.
And let’s book a hefty short-term profit on our Squarespace (SQSP) put.
MRVL Nov Week Two (11/12) 71 Put
Current Stock Price: $72.88
Cash in Hand: $0.38
- Buy to close the MRVL Nov Week Two (11/12) 71 Put for around $0.15
- Sell to open the MRVL Nov Monthly (11/19) 71 Put for around $0.68
- Set initial credit limit at $0.53, but adjust as needed to roll today
New Cash in Hand: $0.91
Expiration: After the close on Friday, Nov. 19
Potential Rate of Return: 1.3% in 11 days, or 43% annualized, if this option expires worthless
SQSP Nov Monthly (11/19) 40 Put
Current Stock Price: $44.62
Cash in Hand: $0.60
Action: Buy to close the SQSP Nov Monthly (11/19) 40 Put
Current Option Price: $0.25-$0.25
Recommended Limit: Set your initial limit order at $0.25, but adjust as needed to close today
Profit: $0.35, or $35 per contract
Rate of Return: 0.9% in three days, or 106% on an annualized basis