I am recommending we roll our Starbucks (SBUX) put out one week to avoid assignment and buy time for the stock to recover.
Current Stock Price: $99.44
Cash in Hand: $0.79
Action:
- Buy to close the SBUX Mar Monthly (3/17) 102 Put for around $2.66
- Sell to open the SBUX Mar Week Four (3/24) 102 Put for around $3.35
- Set your initial credit limit at $0.69, but adjust as needed to roll today
Cash in Hand: $1.48
Expiration: After the close on Friday, March 24
Potential Rate of Return: 1.5% in 18 days, or 29% annualized, if this option expires worthless