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: $45.96
Cost Basis: $54.88
- Buy to close the KR Jul Week Five (7/29) 48 Call for around $0.01
- Sell to open the KR Aug Week One (8/5) 46.50 Call for around $0.49
- Set initial credit limit at $0.48, but adjust as needed to roll today
New Cost Basis: $54.40