I am recommending we roll our Walt Disney (DIS) and Kroger Co. (KR) calls out two weeks and to higher strike prices.
With DIS, we will be picking up some more income in addition to potential appreciation.
With KR, this is a cash-neutral roll based on the current midpoints. However, adjust your limit order as needed to roll the position, even if it means spending some cash. It’s worth it, as we will be picking up an additional $1.50 per share in appreciation.
DIS Sep Monthly (9/16) 114 Call
Current Stock Price: $111.68
Cost Basis: $132.98
Action:
- Buy to close the DIS Sep Monthly (9/16) 114 Call for around $0.46
- Sell to open the DIS Sep Week Five (9/30) 115 Call for around $1.72
- Set initial credit limit at $1.26, but adjust as needed to roll today
New Cost Basis: $131.72
KR Sep Monthly (9/16) 48.50 Call
Current Stock Price: $48.76
Cost Basis: $53.55
Action:
- Buy to close the KR Sep Monthly (9/16) 48.50 Call for around $0.73
- Sell to open the KR Sep Week Five (9/30) 50 Call for around $0.73
- Set initial credit limit at $0, but adjust as needed to roll today
New Cost Basis: $53.55