[Rolling naked puts on Armor Holdings (AH) from Nov to Dec/Buying to close Nov 40 Puts (AHWH) and simultaneously selling to open Dec 40 Puts (AHXH)on Armor Holdings (AH)/Net credit $0.30]
Dear Member,
The premium on the Nov 40 Puts (AHWH) on Armor Holdings (AH) is nearing parity which means there is a greater chance of the stock being put to me early. Therefore, I am rolling the position out from Nov to Dec by buying back the Nov 40 Puts (AHWH) and selling the Dec 40 Puts (AHXH) for a net credit of $0.40. When I originally opened the Nov position, I had taken in a credit of $1.90 so I am lessening the chance of the stock being put to me and adding to the credit received.
DISCLOSURE: At the time of publication, I am short the Nov 40 puts on AH.
Sincerely,
Bill Kraft
CutLoss, Inc.
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