We have a large net debit on Sunrun (RUN), but I remain bullish on the solar sector and the company in particular. We will exit this position before earnings are reported on May 4 and re-enter after the announcement.
Current Stock Price: $25.71
Net Debit: $16.48
Action:
- Buy to close the RUN Apr Monthly (4/14) 30 Put for around $4.35
- Sell to open the RUN May Monthly (5/20) 30 Put for around $5.45
- Set your initial credit limit at $1.10, but adjust as needed to roll today
New Net Debit: $15.38
Expiration: After the close on Friday, May 20
Potential Rate of Return: I am targeting breakeven for this position