Rolling our AMC put contracts to a higher strike price.
After breaking down sharply (giving us a chance to lock in big profits on our original trade), AMC has rebounded. This bounce puts the stock at a perfect spot to roll over after testing the breakdown area.
This gives us a good risk / reward spot to roll our put contracts to a higher strike and then profit from another leg lower for AMC.
Rolling our put contracts lets us buy more intrinsic value at a discount, and sets us up for better profits when AMC trades lower.
- Selling (to close) the AMC January 21st $30 Puts
- Buying (to open) the AMC January 21st $38 Puts
- Limit: DEBIT of $5.50 or less
- The new position will represent roughly 11.4% of our Spec Model capital
- 10:36 Executed
- Sold AMC Jan 21st $30 Puts @ $4.45
- Bot AMC Jan 21st $38 Puts @ $9.85
- Net Debit: $5.40