Our Marvell Technology (MRVL) put is well out of the money and trading for just a few cents despite the fact that it doesn’t expire for another week. Let’s roll out one week and up to a higher strike to generate more income and reduce our net debit on the position.
Note that this trade is only for members already in the position.
Current Stock Price: $61.48
Net Debit: $12.60
- Buy to close the MRVL 23 Jun 56 Put for around $0.07
- Sell to open the MRVL 30 Jun 59 Put for around $0.84
- Set your initial credit limit at $0.77, but adjust as needed to roll today
New Net Debit: $11.83
Expiration: After the close on Friday, June 30
Potential Rate of Return: We are targeting breakeven for this position