Walt Disney (DIS) has run up over the past week. I am recommending we roll our put out one week and to a higher strike to generate more income and reduce our net debit on the position.
I am also recommending we roll our Kroger Co. (KR) call out two weeks to generate income and capture more potential appreciation.
DIS Jun Week One (6/3) 101 Put
Current Stock Price: $109.06
Net Debit: $15.73
- Buy to close the DIS Jun Week One (6/3) 101 Put for around $0.06
- Sell to open the DIS Jun Week Two (6/10) 107 Put for around $1.59
- Set initial credit limit at $1.53, but adjust as needed to roll today
New Net Debit: $14.20
KR Jun Week One (6/3) 51 Call
Current Stock Price: $51.14
Cost Basis: $57.27
- Buy to close the KR Jun Week One (6/3) 51 Call for around $0.71
- Sell to open the KR Jun Monthly (6/17) 52 Call for around $1.82
- Set initial credit limit at $1.11, but adjust as needed to roll today
New Cost Basis: $56.16