I am recommending we roll our Sonos (SONO) put out one week and to a lower strike to buy time and generate more income.
Current Stock Price: $37.91
Cash in Hand: $0.40
Action:
- Buy to close the SONO Sep Week Two (9/10) 38.50 Put for around $0.78
- Sell to open the SONO Sep Monthly (9/17) 38 Put for around $0.98
- Set initial credit limit at $0.20, but adjust as needed to roll today
New Cash in Hand: $0.60
Expiration: After the close on Friday, Sept. 17
Potential Rate of Return: 1.6% in 10 days, or 58% annualized, if this option expires worthless