The protective puts we purchased on Taiwan Semiconductor Manufacturing (TSM) are in the money. Let’s roll them out one week and to a lower strike. This will allow us to pocket some cash while maintaining our downside protection.
Note: No action is needed on the TSM Jan 2023 (1/20/23) 70/Oct Week Two (10/14) 73 Call Spread at this time.
Current Stock Price: $69.29
Cost Basis: $102.39 (Note that the cost basis was incorrectly listed as $105.75 in the previous alert.)
Action:
- Sell to close 4 TSM Sep Week Five (9/30) 70 Puts for around $1.26 each ($5.04 total)
- Buy to open 4 TSM Oct Week One (10/7) 65 Puts for around $0.58 each ($2.32 total)
- Set initial credit limit at $0.68 ($2.72 total), but adjust as needed to roll today
New Cost Basis: $99.67