Options Trade - PAAS

Back on April 17, I sold 2 PAAS puts.  I sold two 07/20/13 $14 PAAS Puts @ 1.47.  That post can be found here.

Since then I've had one of those puts assigned and the last put expires tomorrow.  Since the put is in the money I will be required to purchase 100 shares at $14/share.  Instead of letting the put expire I decided to close out the put for a small loss and sell a further dated put to make up the difference.  

This practice is typically called "rolling" your puts.  

Here's what I did.  I bought back the $14 PAAS 07/20 Put for 1.87 and simultaneously sold a Jan 18 '14 $13 PAAS PUT for 2.32.  Not counting commissions I've now earned an additional $55 and if assigned I will have reduced my cost of these 100 shares from $12.53 ($14 - 1.47).  to $11.08 ($13 - 2.32 + .40).  The .40 is the loss I incurred by buying back the original put for 1.87.  

By rolling the put to a later date I feel I've reduced my risk.  

PAAS continues to be my speculative options play.  

I currently have 14 open options positions and a total options profit of $3058 for 2013.  My options page has been updated accordingly.