Let’s roll our Walt Disney (DIS) and Kroger Co. (KR) calls out two weeks to generate more cash and reduce our cost basis on the positions.
DIS Oct Week One (10/7) 103 Call
Current Stock Price: $100.86
Cost Basis: $130.87
Action:
- Buy to close the DIS Oct Week One (10/7) 103 Call for around $0.28
- Sell to open the DIS Oct Monthly (10/21) 103 Call for around $2.20
- Set initial credit limit at $1.92, but adjust as needed to roll today
New Cost Basis: $128.95
KR Oct Week One (10/7) 46.50 Call
Current Stock Price: $44.25
Cost Basis: $53.11
Action:
- Buy to close the KR Oct Week One (10/7) 46.50 Call for around $0.02
- Sell to open the KR Oct Monthly (10/21) 45 Call for around $0.85
- Set initial credit limit at $0.83, but adjust as needed to roll today
New Cost Basis: $52.28