TRADE ROLL

CF Industries (CF):  111.54

CF Industries stock price is on a tear after Poland’s largest chemicals company and the second largest producer of mineral fertilizers in the EU stopped production of nitrogen fertilizers.

Our 26 Aug 100 put can be closed for around 0.07. There is a lot of implied volatility in the CF options which means rich premiums. Let’s roll our put out and up for more cash … but hold back from going to close to at the money due to continued volatility in this sector.

ACTION: Roll the CF 26 Aug 100 put to the CF 9 Sep 105 put for a net credit of around 1.75 to 1.78

Buy to close the CF 26 Aug 100 put

Sell to open the CF 9 Sep 105 put