Kroger Co. (KR) has moved higher along with other retail stocks in recent weeks, pushing our call into the money.
I am recommending we spend a little cash to roll out two weeks and to a higher strike price to pick up another $1 per share in potential appreciation.
Current Stock Price: $49.94
Cost Basis: $54.53
Action:
- Buy to close the KR Aug Monthly (8/19) 47.50 Call for around $2.43
- Sell to open the KR Sep Week One (9/2) 48.50 Call for around $1.99
- Set initial debit limit at $0.44, but adjust as needed to roll today
New Cost Basis: $54.87