[Rolling Naked Puts on Briggs and Stratton (BGG)/Simultaneously Buying to close the Feb 40 Puts (BGGNH) and Selling to open the Mar 40 Puts (BGGOH)/Limit Net Credit $0.60]
Dear Member,
For the second month in a row, I am rolling my naked puts on Briggs and Stratton for an additional credit. Presently I am short the Feb 40 puts (BGGNH). I am placing an order to buy to close that postion and simultaneously sell to open the Mar 40 Puts for a net credit of $0.60. Even though BGG is below 40, I am able to continue to bring in income by this move. Of course, since these puts are slightly in the money, I am at risk of having the stock put to me, but that is unlikely as long as there is time value in the premium and, of course, there is quite a bit as of the moment. Even if the stock were put to me, I wouldn't mind since I do like the company and it is post split.
DISCLOSURE: At the time of publication, I am short the Feb 40 puts on BGG.
Sincerely,
Bill Kraft for
CutLoss, Inc.
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