I am recommending we book profits on our Toll Brothers (TOL) put rather than hold through tomorrow’s CPI report given that we have exceeded our rate-of-return goals.
Current Stock Price: $59.67
Cash in Hand: $1
Action: Buy to close the TOL Feb Monthly (2/17) 58 Put
Current Option Price: $0.50-$0.60
Recommended Limit: Set your initial limit order at $0.55, but adjust as needed to close today
Profit: $0.45, or $45 per contract
Rate of Return: 0.8% in seven days, or 40% on an annualized basis