I am recommending we roll our Marvell Technology Group (MRVL) put out one week and to a higher strike. This will allow us to turn our net debit into cash in hand.
And let’s close Twitter (TWTR) early. We have a terrific profit after just three days in the position.
MRVL Jul Week Five (7/30) 59 Put
Current Stock Price: $59.54
Net Debit: $0.82
Action:
- Buy to close the MRVL Jul Week Five (7/30) 59 Put for around $0.23
- Sell to open the MRVL Aug Week One (8/6) 60 Put for around $1.22
- Set your initial credit limit at $0.99, but adjust as needed to roll today
New Cash in Hand: $0.17
Expiration: After the close on Friday, Aug. 6
Potential Rate of Return: 0.3% in 172 days, or 0.6% annualized, if this option expires worthless
TWTR Jul Week Five (7/30) 66 Put
Current Stock Price: $70.37
Cash in Hand: $0.69
Action: Buy to close the TWTR Jul Week Five (7/30) 66 Put
Current Option Price: $0.03-$0.04
Recommended Limit: Set your initial limit order at $0.04, but adjust as needed to close today
Profit: $0.65, or $65 per contract
Rate of Return: 1% in three days, or 120% on an annualized basis