I am recommending we roll our Advanced Micro Devices (AMD) call out one week and to a lower strike to generate more income. The company is scheduled to report earnings on May 3. If we are not called out next week, we will exit the position temporarily by selling our shares and re-enter after the announcement.
We have a large net debit on our Taiwan Semiconductor Manufacturing (TSM) position. I am recommending you sell a close-to-the-money put to generate more income. The goal is to be assigned shares, as I believe we can get back to breakeven faster by selling calls.
Finally, I am recommending a call to sell on our uncovered Walgreens Boots Alliance (WBA) shares to reduce our cost basis on the position.
AMD Apr Week Four 110 Call
Current Stock Price: $95.39
Cost Basis: $115.64
- Buy to close the AMD Apr Week Four (4/22) 110 Call for around $0.02
- Sell to open the AMD Apr Week Five (4/29) 100 Call for around $1.47
- Set initial credit limit at $1.45, but adjust as needed to roll today
New Cost Basis $114.19
Current Stock Price: $100.16
Net Debit: $29.80
Action: Sell to open the TSM Apr Week Four (4/22) 100 Put for around $1.22, but adjust as needed to sell a put today
New Net Debit: $28.58
WBA Uncovered Shares
Current Stock Price: $46.38
Cost Basis: $49.79
Action: Sell to open the WBA Apr Week Four (4/22) 46.50 Call for around $0.30, but adjust as needed to sell a call today
New Cost Basis: $49.49