I am recommending we roll our Walt Disney (DIS) and Kroger Co. (KR) calls to generate more income and reduce our cost basis on the positions. We continue to target a mix of cash and appreciation.
Today, it was announced that Disney’s board voted to extend CEO Bob Chapek’s contract to July 2025, which came as a bit of a surprise to some of us. The stock briefly touched the $100 level earlier this week but is now trading back below our call’s strike.
KR has run up this week, so we are going to roll out two weeks and to a higher strike to capture more potential appreciation.
DIS Jul Week One (7/1) 97 Call
Current Stock Price: $95.40
Cost Basis: $119.52
Action:
- Buy to close the DIS Jul Week One (7/1) 97 Call for around $0.64
- Sell to open the DIS Jul Week Two (7/8) 97 Call for around $1.48
- Set initial credit limit at $0.84, but adjust as needed to roll today
New Cost Basis: $118.68
KR Jul Week One (7/1) 49 Call
Current Stock Price: $48.62
Cost Basis: $56.08 (Note that the cost basis was incorrectly listed as $47.25 in the previous alert.)
Action:
- Buy to close the KR Jul Week One (7/1) 49 Call for around $0.39
- Sell to open the KR Jul Monthly (7/15) 50 Call for around $0.72
- Set initial credit limit at $0.33, but adjust as needed to roll today
New Cost Basis: $55.75