Rolling our CLF puts to a higher strike price.
Shares of CLF bounced off a key support level and appear ready to trend higher. Infrastructure projects and manufacturing should help to drive demand for iron ore and steel.
Rolling our position to the January 21st $20 puts gives us a chance to collect more income from this play, while closing out some profits from our existing position.
- Buy (to close) four CLF January 21st $18 puts
- Sell (to open) four CLF January 21st $20 puts
- Limit: Net CREDIT of $0.50 or more
- The new position will represent roughly 8.3% of our model.
~~~~~~~~~ - 11:28 Executed
- Bot 4 CLF Jan 21st $18 Puts @ $0.48
- Sold 4 CLF Jan 21st $20 Puts @ $0.99
- Net Credit $0.51
*NOTE: If you don’t have a position in CLF, simply sell the NEW put contracts to enter the trade. I recommend a limit of $0.95 or more for selling the new put contracts.
- Sell (to open) four CLF January 21st $20 puts
- Limit: $0.95 or more