The market has turned positive on debit ceiling discussion optimism and this gives us a chance to get back into a new trade position. Let’s go back to Roku Inc. (ROKU) for a strike 10% out of the money at a solid credit.
Please do not chase the trade by accepting less premium than the “go as low as” price recommended below. Work your limit order but exercise patience and let the trade come to you.
Current Stock Price: $54.81
Action: Sell to open ROKU 9 June 48 put
Current Option Price: $0.54 to $0.58
Recommended Limit: Set your initial limit order at $0.57. You can go as low as $0.47, but please don’t start there and always use limit orders. We will target to exit this trade at $0.25.
Expiration: After the close on Friday, June 9 but expect to close the trade ahead of that date.
Potential Rate of Return: 1.2% in 15 days if this option expires worthless.