I believe the sell-off in Walgreens Boots Alliance (WBA) will be short-lived. Therefore, I am recommending we roll our put out one week and up one strike to take advantage of elevated option premiums.
Current Stock Price: $46.40
Cash in Hand: $0.87
Action:
- Buy to close the WBA Jul Monthly (7/16) 47.50 Put for around $1.14
- Sell to open the WBA Jul Week Four (7/23) 48 Put for around $1.79
- Set your initial credit limit at $0.65, but adjust as needed to roll today
New Cash in Hand: $1.52
Expiration: After the close on Friday, July 23
Potential Rate of Return: 3.2% in 18 days, or 64% annualized, if this option expires worthless