Making Trade adjustments – when to use common sense

Sometimes I get a chuckle when I look at Option chains for a stock that I want to adjust. I got one of those good laughs today when I was reviewing my choices today in $NUS and saw this:

NUS_Sep_optionsFor a little history, you can review an earlier post from late July here. I made an adjustment earlier today out to the October expiration for the existing September Collar. I was left with the short 65 Puts to deal with primarily because they are currently NO BID.

So what do you do when that happens? I don’t really want to pay the Ask at $.10 to BtC the Puts so what makes more sense here? Even if I got lucky and got a fill at $.04 like the 1 contract in volume did today, is there a better move to make? Well, this is what I did instead:

NUS_Sep_Oct I bought the September 70 Puts for 7 pennies. This creates a 70/65 Put Spread for September so those left over short 65 Puts are now protected.

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