Let’s take the money and run with our Roku (ROKU) and Block (SQ) positions, earning excellent annualized rates of return.
ROKU Jan Monthly (1/20) 46 Put
Current Stock Price: $51.35
Cash in Hand: $0.36
Action: Buy to close the ROKU Jan Monthly (1/20) 46 Put
Current Option Price: $0.08-$0.10
Recommended Limit: Set your initial limit order at $0.09, but adjust as needed to close today
Profit: $0.27, or $27 per contract
Rate of Return: 0.6% in two days, or 107% on an annualized basis
SQ Jan Monthly (1/20) 69 Put
Current Stock Price: $75.63
Cash in Hand: $0.40
Action: Buy to close the SQ Jan Monthly (1/20) 69 Put
Current Option Price: $0.09-$0.11
Recommended Limit: Set your initial limit order at $0.10, but adjust as needed to close today
Profit: $0.30, or $30 per contract
Rate of Return: 0.4% in two days, or 79% on an annualized basis