We have a large net debit on Sunrun (RUN) after being called out of shares. However, I am not ready to throw in the towel yet.
RUN appears to have put in a trading bottom at its late-February lows. While the stock is more speculative than the typical Options Income Blueprint stock and only offers monthlies, it is also undervalued and has the potential to generate high rates of return over time.
I am recommending a put to sell today. If you were not in the previous position and plan to enter today’s trade, be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $30.73
Net Debit: $18.37
Action: Sell to open the RUN Apr Monthly (4/14) 30 Put
Current Option Price: $1.82-$1.97
Recommended Limit: Set your initial limit order at $1.89, but adjust as needed to sell a put today
New Net Debit: $16.48
Expiration Date: After the close on Thursday, April 14
Potential Rate of Return: I am targeting breakeven for this position