FREE OPTIONS TRADING LESSONS HERE.
8/29/2022
sell -1 Oct 21, 2022 $120 put at $1.30 (credit)
10/21/2022 (exp) 🠈🠈 ROLL
Why Roll?
- KMB dropped to $113.96 (my put was ITM)
- my friend did not want to get assigned
- my friend wanted to collect another credit
Here's the roll:
buy (to close) the Oct 21, 2022 $120 put at $6.35 (debit)
sell (to open) a Nov 18, 2022 $120 put at $7.15 (credit)
Roll for a net credit of $0.80
Credits collected so far: $1.30 + $0.80 = $2.10
Translation:
If I buy back the Nov 18 put at $2.10, I will break even.
If I buy back the Nov 18 put for less than $2.10, I will have a profit.
10/31/2022 (12:26 pm, PT) 🠈🠈 18 DTE
buy back the Nov 18 $120 put at $0.80 (debit) and take profits
Reasons for closing the trade:
- KMB was "overbought" again
- I was able to buy back the short put for less than $2.10
- take profits
