brenmer - 7/24/2016 11:48
I rolled mine down to a level that was still (11.40 to 10.40) pretty linear. Pocketed a sure profit and still get any downside. I don't understand your comment receiving a lower price if you rolled down. Yes the put is worth less but I get to add the premium I already took out of it.
I believe what he is saying is if he rolls down $1 he only gains $.70 or so. Leaving $.30 on the table. Depends on your market outlook to me. Think it will rally back above your strike price roll it down take some profit to the bank. If you believe market stays lower than strike why not hold it and keep that $.30? |