5 Tools For Timing Rolling Down Naked Puts in Chipotle Mexican Grill Stock (CMG) – Investor Questions

Every investor who sells put options for income will at some point wonder about the timing of rolling down naked puts. Instead of guessing when the best point is, often the better choice is to use the 5 technical tools I have outlined in the article below, to advise when to roll-down or to close a naked put position to avoid being assigned shares, or worse, lose capital in a downturn that roars past the short put strike that was sold for income.

An investor emailed wondering about rolling down his naked put position in Chipotle Mexican Grill Stock. This article is 2300 words in length and will need 7 pages if printed.

Let’s review the investor’s questions and then look at the timing tools and how to use them to know when to roll-down his naked put position or close it to avoid large losses.

Investor Questions:

Greetings!

I am new member and it is exciting to start to learn several strategies from you.

I have a naked put position in CMG. (Chipotle Mexican Grill Stock)

“one contract naked PUT JUL 15 16 $380” which I sold for about $350. The underlying is @392 today (July 5). I would like to roll this in and out (within next couple weeks when my PUTS become deep in the money). This is the first time I plan to apply this strategy. Can you please guide me with what you might do and what choices you think might be better?

I totally understand that I am trading at my own risk. Thanks a bunch! Regards,

Sharath

When To Roll-Down and When To Hold

If the goal is to not own shares in Chipotle Mexican Grill Stock, then Sharath has two options……….the rest of this strategy article is for FullyInformed Members. It is 2300 words in length and requires 7 pages if printed.

FullyInformed Members can read this investing strategy article directly through this link or they can sign in to the full site here. Non-members can join here or read about the benefits of a membership.

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.