I am recommending we roll the short leg of our Taiwan Semiconductor Manufacturing (TSM) recovery position out two weeks and to a higher strike to generate more income and capture more potential appreciation.
Note: No action is needed on the TSM Jan 2023 (1/20/23) 70 Calls at this time.
Current Stock Price: $89.65
Cost Basis: $118.99
- Buy to close 4 TSM Aug Monthly (8/19) 90 Calls for around $0.55 each ($2.20 total)
- Sell to open 4 TSM Sep Week One (9/2) 92 Call for around $1.24 each ($4.96 total)
- Set initial credit limit at $0.69 ($2.76 total), but adjust as needed to roll today
New Cost Basis: $116.23