I am recommending we roll our Micron Technology (MU) put and Twitter (TWTR) call.
MU Mar Week Four (3/26) 90 Put
Current Stock Price: $85.97
Cash in Hand: $1.82
Action:
- Buy to close the MU Mar Week Four (3/26) 90 Put for around $4.25
- Sell to open the MU Apr Week One (4/1) 90 Put for around $5.70
- Set your initial credit limit at $1.45, but adjust as needed to roll today
New Cash in Hand: $3.27
Expiration: After the close on Thursday, April 1
Potential Rate of Return: 3.6% in 15 days, or 88% annualized, if this option expires worthless
TWTR Mar Week Four (3/26) 70 Call
Current Stock Price: $63.88
Cost Basis: $67.36
Action:
- Buy to close the TWTR Mar Week Four (3/26) 70 Call for around $0.06
- Sell to open the TWTR Apr Week One (4/1) 67.50 Call for around $0.56
- Set your initial credit limit at $0.50, but adjust as needed to roll today
New Cost Basis: $66.86
Expiration: After the close on Thursday, April 1
Potential Rate of Return: 0.9% in 45 days, or 7% annualized, if shares are called away