Rolling our ROKU put contracts to a higher strike price.
The Fed’s policy meeting yesterday primed the market for higher inflation and higher interest rates. That’s good news for certain areas of the market that benefit from inflation. But it’s bad news for speculative stocks with high valuations.
I expect ROKU to continue its downward trend after a brief relief rally.
Rolling our put contracts lets us buy more intrinsic value at a discount, and sets us up for better profits when ROKU trades lower.
- Selling (to close) the ROKU January 21st $220 Puts
- Buying (to open) the ROKU January 21st $240 Puts
- Limit: DEBIT of $14 or less
- The new position will represent roughly 9.1% of our Spec Model capital
- 11:23 Executed
- Sold ROKU Jan 21st $220 Puts @ $20.65
- Bot ROKU Jan 21st $240 Puts @ $33.85
- Net Debit: $13.20