The Trade at a Glance
- Underlying Stock: CleanSpark Inc. ($CLSK)
- Strategy: Roll Cash-Secured Put
- Contracts: 3
- Old Expiration: February 28
- New Expiration: March 21
- Strike Price: $11
- Additional Premium Received: $45 ($15 per contract)
- Total Premium Collected: Aggregated credit from rolling the position
- Margin Requirement: $3,300 (secured cash for 300 shares)
Why Roll This Position?
Income Enhancement
Rolling these put options allows us to collect an additional $45 in premium, increasing the total income from this position.
Time Extension
Extending the expiration date to March 21 gives the stock more time to move in our favor while maintaining the same strike price.
Managing Risk and Flexibility
By rolling the option, we avoid potential assignment and continue to manage the position proactively based on market conditions.
Key Metrics Post-Roll
- Total Premium Collected: Initial premium + $45 additional credit
- Break-Even Price: Strike price minus total premium collected
- Risk: Obligation to buy 300 shares of $CLSK at $11 if assigned
Next Steps
- Monitor the $CLSK position and evaluate further rolling opportunities if the stock remains near the strike price.
- Consider closing the position early for a profit if premiums decline.
Final Thoughts
Rolling options is a strategic approach to maximize premium income and manage risk. This $CLSK roll extends the trade while adding credit, maintaining a strong balance between income and risk management.
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Disclaimer: This post is for educational purposes only. Past performance isn’t indicative of future results. Options trading carries significant risk.
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