We were called out of our Charles Schwab (SCHW) shares after the stock ran up sharply last week, incurring a net debit on the position.
The stock has struggled since late March, but things seem to be looking up, thanks in part to rising interest rates. I am recommending a put to sell to reduce our net debit on the position.
You can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $68.95
Current Net Debit: $5.24
Action: Sell to open the SCHW Aug Week Two (8/12) 68 Put
Current Option Price: $1.03-$1.13
Recommended Limit: Set your initial limit order at $1.08, but adjust as needed to sell a put today
Expiration: After the close on Friday, Aug. 12
New Net Debit: $4.16
Potential Rate of Return: I am targeting breakeven for this position