I am recommending we roll our Advanced Micro Devices (AMD) and Taiwan Semiconductor Manufacturing (TSM) calls to lower strikes while keeping the expiration date the same.
The goal is to generate a chunk of cash and then get called out of our shares. We will then redeploy the capital on recovery positions using bull call spreads.
Let’s also roll our Walgreens Boots Alliance (WBA) call out one week and to a lower strike to generate more income and reduce our cost basis on the position.
AMD Jul Week Two (7/8) 80 Call
Current Stock Price: $74.94
Cost Basis: $114.54
Action:
- Buy to close the AMD Jul Week Two (7/8) 80 Call for around $0.15
- Sell to open the AMD Jul Week Two (7/8) 75 Call for around $1.49
- Set initial credit limit at $1.34, but adjust as needed to roll today
New Cost Basis: $113.20
TSM Jul Week Two (7/8) 85 Call
Current Stock Price: $75.59
Cost Basis: $121.31
Action:
- Buy to close the TSM Jul Week Two (7/8) 85 Call for around $0.02
- Sell to open the TSM Jul Week Two (7/8) 75 Call for around $1.42
- Set initial credit limit at $1.40, but adjust as needed to roll today
New Cost Basis: $119.91
WBA Jul Week Two (7/8) 42 Call
Current Stock Price: $38.02
Cost Basis: $46.35
Action:
- Buy to close the WBA Jul Week Two (7/8) 42 Call for around $0.01
- Sell to open the WBA Jul Monthly (7/15) 38 Call for around $0.72
- Set initial credit limit at $0.71, but adjust as needed to roll today
New Cost Basis: $45.64