Our Charles Schwab (SCHW) put is in the money after the stock sold off late this week on no discernable news.
I am recommending we roll our put out one week to buy time for the stock to recover. Plus, we’ll pick up some more income in the process.
Current Stock Price: $71.34
Cash in Hand: $0.56
- Buy to close the SCHW Apr Week Four (4/22) 75 Put for around $3.55
- Sell to open the SCHW Apr Week Five (4/29) 75 Put for around $4
- Set your initial credit limit at $0.45, but adjust as needed to roll today
New Cash in Hand: $1.01
Potential Rate of Return: 1.3% in 11 days, or 45% annualized, if this option expires worthless