I am recommending we roll our Ford (F) call out two weeks to reduce our cost basis on the shares.
Let’s also sell a Pfizer (PFE) put to generate income and reduce our net debit on the position.
F Mar Week Four (3/25) 17 Call
Current Stock Price: $16.94
Cost Basis: $23.10
- Buy to close the F Mar Week Four (3/25) 17 Call for around $0.17
- Sell to open the F Apr Week Two (4/8) 17 Call for around $0.58
- Set initial credit limit at $0.41, but adjust as needed to roll today
New Cost Basis: $22.69
Current Stock Price: $52.66
Net Debit: $2.48
Action: Sell to open the PFE Apr Week One (4/1) 52.50 Put for around $0.83, but adjust as needed to sell a put today
New Net Debit: $1.65