The recent downturn in Apple Stock has meant my credit put spreads had to be rolled lower. The roll-down process for credit put spreads is sometimes perplexing to investors. There are though many different ways to roll-down or roll out and down credit put spreads, if the goal is to avoid assignment.
In my case I had a total of 55 credit put spreads in Apple Stock for Dec 18 expiry, divided over two different trades and different strikes. If I wanted to accept assignment this would require about $600,000 in capital or a combination of capital plus margin.
I have no interest in holding 5500 shares of Apple Stock or tie up that much of my total available capital. That makes the choice easy. Rolling down and ahead of the decline in Apple Stock is my only choice aside from taking losses and there is no need to take any losses.
There are many different ways to roll-down credit put spreads. The key to all of them is …..the rest of the strategy article on rolling down credit put spreads profitably is for members.
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Apple Stock – Keeping Roll-Downs of Credit Put Spreads Profitable
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