I am recommending we roll our Advanced Micro Devices (AMD) call out two weeks and to a lower strike to generate more income and reduce our cost basis.
And let’s roll our Pfizer (PFE) put out two weeks and to a higher strike to generate more income and reduce our net debit on the position.
AMD Apr Week Two (4/8) 115 Call
Current Stock Price: $102.39
Cost Basis: $117.40
Action:
- Buy to close the AMD Apr Week Two (4/8) 115 Call for around $0.02
- Sell to open the AMD Apr Week Four (4/22) 110 Call for around $1.78
- Set initial credit limit at $1.76, but adjust as needed to roll today
New Cost Basis: $115.64
PFE Apr Week Two (4/8) 52.50 Put
Current Stock Price: $54.77
Net Debit: $1.20
Action:
- Buy to close the PFE Apr Week Two (4/8) 52.50 Put for around $0.04
- Sell to open the PFE Apr Week Four (4/22) 54 Put for around $0.97
- Set initial credit limit at $0.93, but adjust as needed to roll today
New Net Debit: $0.27