I am recommending we close our United Airlines (UAL) put. While we will be giving back a good deal of cash, I’d rather play it safe than sorry.
We will return to the airline sector in the coming weeks with a new trade.
Current Stock Price: $44.53
Cash in Hand: $0.42
Action: Buy to close the UAL May Monthly (5/20) 44 Put
Current Option Price: $0.22-$0.26
Recommended Limit: Set your initial limit order at $0.24, but adjust as needed to close today
Profit: $0.18, or $18 per contract
Rate of Return: 0.4% in four days, or 37% on an annualized basis