I am recommending we roll our Kroger Co. (KR) call out one week and to a lower strike to generate more income and reduce our cost basis on the position.
Current Stock Price: $48.01
Cost Basis: $55.75
- Buy to close the KR Jul Monthly (7/15) 50 Call for around $0.06
- Sell to open the KR Jul Week Four (7/22) 49 Call for around $0.52
- Set initial credit limit at $0.46, but adjust as needed to roll today
New Cost Basis: $55.29