Let’s roll our Marvell Technology (MRVL) put out two weeks and down one strike. This will allow us to lower our exposure while also generating more income to reduce our net debit on the position.
Note that this trade is only for members already in the position.
Current Stock Price: $ 60.20
Net Debit: $11.83
Action:
- Buy to close the MRVL 30 Jun 59 Put for around $0.34
- Sell to open the MRVL 14 Jul 58 Put for around $0.98
- Set your initial credit limit at $0.64, but adjust as needed to roll today
New Net Debit: $11.22
Expiration: After the close on Friday, July 14
Potential Rate of Return: We are targeting breakeven for this position