Our Apple (AAPL) call is deep in the money. Let’s roll it out a month to avoid being called out of shares. We are moving the strike price up to capture more potential appreciation, while the income we generate will reduce our cost basis on the position.
Current Stock Price: $154.90
Cost Basis: $150.25
- But to close the AAPL Feb Monthly (2/17) 139 Call for around $16
- Sell to open the AAPL Mar Monthly (3/17) 140 Call for around 16.20
- Set initial credit limit at $0.20, but adjust as needed to roll today
New Cost Basis: $150.05