Our Kroger (KR) call is in the money. I am recommending we roll out two weeks and to a higher strike price to avoid having our shares called away. While we will have to spend a bit of cash to do so, we will pick up an additional $2 per share in appreciation.
Current Stock Price: $47.67
Cost Basis: $52.80
- Buy to close the KR Nov Monthly (11/18) 46 Call for around $1.77
- Sell to open the KR Dec Week One (12/2) 48 Call for around $1.58
- Set initial debit limit at $0.19, but adjust as needed to roll today
New Cost Basis: 52.99