The market is bouncing back following yesterday’s sharp sell-off.
A number of factors contributed to yesterday’s drubbing. These included the Federal Reserve’s gloomy view of the economy, worries over the pace of coronavirus vaccine rollouts, and the recent spate of volatility in stocks like GameStop (GME) and Tesla (TSLA) that is being driven by the Reddit crowd and other retail investors.
We will continue to trade through the noise, and I am comfortable with our positions as they currently stand.
I am recommending we roll our Micron Technology (MU) put out one week to avoid assignment and being in a lot more cash.
Current Stock Price: $78.26
Cash in Hand: $1.14
- Buy to close the MU Jan Week Five (1/29) 80 Put for around $2.30
- Sell to open the MU Feb Week One (2/5) 80 Put for around $3.25
- Set your initial credit limit at $0.95, but adjust as needed to roll today
New Cash in Hand: $2.09