Rolling our MARA puts and adding an additional contract.
Marathon Digital has been a disappointing play. The Bitcoin miner pulled back sharply as cryptocurrencies traded lower. This caused the value of our put contract to move higher (the opposite of what we want to see).
Still, cryptocurrencies appear to be ready to bounce, and MARA found support near the stock’s 200 day average. This sets up an opportunity to roll to a lower strike price and January expiration.
The new position gives us an annualized yield above 85% while creating a new buffer of roughly $8.00 per share to help manage our risk.
*NOTE: If you don’t have a position in MARA, simply sell the NEW put contracts to enter the trade.
- Buy (to close) 1 MARA December $60 Put.
- Limit: $18.00 or less.
- 14:23 Executed
- Bot 1 MARA Dec 17th $60 Put @ $17.70
- Sell (to open) 2 MARA January 21st $35 Puts.
- Limit: $3.80 or more.
- The new position will represent roughly 7.4% of our model.
- 14:24 Executed
- Sold 2 MARA Jan 21st $35 Puts @ $4.10