Sunrun (RUN) has taken a major hit but looks to have found a bottom in the $20 to $22 range. I am recommending we stick with our put position by rolling it out one month.
I expect shares to move higher, in which case we will roll our put up to a higher strike to capture more income and continue to reduce our net debit on the position.
If you have been assigned shares and need guidance on selling calls, please contact me at [email protected].
Note that this trade is only for members already in the position.
Current Stock Price: $22.52
Net Debit: $15.38
- Buy to close the RUN May Monthly (5/20) 30 Put for around $7.45
- Sell to open the RUN Jun Monthly (6/17) 30 Put for around $7.85
- Set your initial credit limit at $0.40, but adjust as needed to roll today
New Net Debit: $14.98
Expiration: After the close on Friday, June 17
Potential Rate of Return: I am targeting breakeven for this position