United Airlines (UAL) reported record quarterly earnings on strong international travel demand and raised its full-year profit outlook. However, since hitting a 52-week high on July 21, shares have struggled and the put we sold has gone into the money.
Let’s roll our put out two weeks to buy ourselves some time and generate more income.
Current Stock Price: $53.18
Cash in Hand: $0.80
Action:
- Buy to close the UAL 4 Aug 55 Put
- Sell to open the UAL 18 Aug 55 Put
- Set your initial net credit limit at $0.57, but adjust as needed to roll today
New Cash in Hand: $1.37
New Target Exit Price: $0.65
Potential Rate of Return: 1.3%