Rolling a position in MDT
- themoneyloaf
- Apr 2
- 3 min read
Happy weekend!
The ongoing market volatility hasn't been the best environment for trades, as we'll see in today's roll in MDT
This week:
rolling a position in Medtronic (MDT)
Rolling a position in MDT
Earlier in the month I sold a cash-secured put in MDT at the $92.50 strike expiring Mar 20 and received $100 in premium upfront.
As you can see from the chart below, MDT hasn't had a good time in 2026 at all and is down nearly 10% in just the first 3 months of the year, and on Mar 20 it closed at $86.16, way below my strike price of $92.50.
This means I'm on the hook to buy 100 shares of MDT at $92.50, unless I do what's called a “roll”.
A roll is exactly what it sounds like, basically buying back the existing option and selling a new option at a later expiry to “roll” the position forward.
In this case, I bought back the expiring Mar 20 $92.50 cash-secured put and sold a new put expiring Apr 17 at the same $92.50 strike. I did this for an additional $124 credit. (note the screenshot says $115, but my actual fill was $124).
Adding this to the previous $1.00 credit, I now have a new position expiring Apr 17 at the $92.50 strike, and I've collected a total of $224 in premium.
What I'm basically doing is buying time for MDT to recover to $92.50, while still earning extra premium along the way.
As you can see in the screenshot sharing the update to my private community below, at the time I was considering the roll, MDT was in a “will it, won't it” position, but I decided to just perform the roll early and not keep worrying and checking it every day until expiry.
Of course with MDT currently trading at $87.14 the trade is not over and it could take a while for this position to come good, but that's the reality of any kind of trade or investment in the stock market, they don't always work out immediately!
This trade (and all trades in this newsletter) are shared in close-to real time to my private community as updates in my own portfolio (not recommendations). If you're familiar with the basic mechanics of options, you can consider joining the private community to view these updates as well.
And of course the guidance for managing and closing both trades were posted to the community as well.
You can find out more about my private community at the link below.
Closing thoughts & useful links
Last week I said the VIX hasn't jumped above 30 in 2026, that changed this week and it closed at 31.05 on Friday.
Obviously this is just one reading, but with the broad markets down for a 5th consecutive losing week, it does feel like the level of nervousness is beginning to creep up.
Have a good weekend!
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This article is for educational purposes only. This is my own portfolio which is being managed according to my goals and risk tolerance. Your situation is likely different and you should do your own due diligence before investing in stocks or options.
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