Taiwan Semiconductor Manufacturing (TSM) has run up this week and the defensive puts we purchased are on track to expire worthless. We will simply watch them do so.
I am also recommending we roll the short leg of the LEAP call spread out two weeks and to a higher strike price to capture more potential appreciation and reduce the chance of being called out.
Note: No action is needed on the TSM Jan 2023 (1/20/23) 70 Calls at this time.
Current Stock Price: $88.90
Cost Basis: $118.91
- Buy to close 4 TSM Aug Week One (8/5) 88 Calls for around $2.13 ($8.52 total)
- Sell to open 4 TSM Aug Monthly (8/19) 90 Calls for around $2.15 ($8.60 total)
- Set initial debit limit at $0.02 ($0.08 total), but adjust as needed to roll today
- Watch 4 TSM Jul Week Five (7/29) 85 Puts expire worthless
New Cost Basis: $118.99