I am recommending we roll our Taiwan Semiconductor Manufacturing (TSM) and Walgreens Boots Alliance (WBA) calls out two weeks and to higher strike prices to capture more potential appreciation. We will also generate income to reduce our cost basis on the positions.
TSM Apr Week Five (4/29) 93 Call
Current Stock Price: $92.69
Cost Basis: $127.87
Action:
- Buy to close the TSM Apr Week Five (4/29) 93 Call for around $1.02
- Sell to open the TSM May Week Two (5/13) 95 Call for around $2
- Set initial credit limit at $0.98, but adjust as needed to roll today
New Cost Basis: $126.89
WBA Apr Week Five (4/29) 44.50 Call
Current Stock Price: $44.19
Cost Basis: $49.10
Action:
- Buy to close the WBA Apr Week Five (4/29) 44.50 Call for around $0.28
- Sell to open the WBA May Week Two (5/13) 45 Call for around $0.77
- Set initial credit limit at $0.49, but adjust as needed to roll today
New Cost Basis: $48.61