Let’s roll our Marvell Technology (MRVL) put out two weeks and to a lower strike price to avoid assignment and reduce our risk.
Current Stock Price: $40.31
Net Debit: $13.85
Action:
- Buy to close the MRVL 21 Apr 42 Put for around $1.74
- Sell to open the MRVL 5 May 41 Put for around $1.79
- Set your initial credit limit at $0.05, but adjust as needed to roll today
New Net Debit: $13.80
Expiration: After the close on Friday, May 5
Potential Rate of Return: We are targeting breakeven for this position