Roll Sell Put on Meta to Lower Assignment Risk

about 1 month ago

Henry

"Meta, I sold this $700 put. Meta is currently trading for $68 per share. So, what I can do is I can move this position lower. And the reason why I would want to do that is because I wouldn't be forced to buy Meta at 700. I can buy it for less. Basically, I'm going from 700 down to 690 to reduce my risk and allow extra time for Meta to recover."

The speaker explains an options roll strategy on Meta where he lowers the strike price from 700 to 690 to reduce the risk of assignment. He highlights that by rolling the sell put and adding more time (targeting a February expiration), he positions himself to benefit from a potential recovery in Meta's price while collecting a credit.

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