With the June option expiry coming this Friday, 20 June, it was time to see what puts are expiring worthless, and what might result in stocks being put to me. One put that would not expire worthless was the 6 JAKK Jun20’14 10 PUTs that I was short. The other 6 JAKK Jun20’14 7.5 PUTs had a good chance to expire worthless with JAKK closing at $7.79 on the 18th.
With regard to the puts at $10 strike, I could either let the stock be put to me and hold a long stock position, or I could roll my position. I decided that I’d rather roll the position to July and no cost, or a small credit. This is partially because the stock would be put to me at an effective buy price of $8.10, which doesn’t reflect any discount to the current trading price.
I first placed an order to roll the contracts to July with a credit of $0.20 per contract. After a few days, the were not filled so I changed the order to a $0.05 credit and then at even money. I managed to roll 2 contracts at a $0.05 credit on the trading session of 16 June and the remaining 4 contracts at even money on the trading session of 18 June.
Effectively, I didn’t make or lose money at the roll. Given that the contracts were going to expire in 2 trading sessions, I think it was fair enough.
I’m uncertain that JAKK will rise to <$10 by the July expiration date, but hopefully it will rise back to the $9 levels that it traded during LH Apr to FH May. That would probably be a good time to take profit.