Teladoc Health (TDOC) continues to run up. I am once again recommending we roll our put to a higher strike while keeping the expiration date the same. This will flip our net debit to cash in hand.
You can enter today’s trade even if you were not in the previous one by selling the second leg. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $36.46
Net Debit: $0.24
- Buy to close the TDOC Jul Week One (7/1) 28 Put for around $0.13
- Sell to open the TDOC Jul Week One (7/1) 32 Put for around $0.43
- Set your initial credit limit at $0.30, but adjust as needed to roll today
New Cash in Hand: $0.06
Expiration: After the close on Friday, July 1
Potential Rate of Return: 0.2% in 25 days, or 3% annualized, if this option expires worthless