Apple (AAPL) has run away from us, and we find ourselves with a deep-in-the-money call.
I want to continue with the position. Therefore, I am recommending we close the existing spread with a small net debit and put on a new spread.
Current Stock Price: $146.26
Cost Basis: $31.97
- Buy to close the AAPL Jul Monthly (7/16) 130 Call for around $16.25
- Sell to close the AAPL Jan Monthly (1/21/22) 100 Call for around $47.35
- Set initial credit limit at $31.10
- Buy to open the AAPL Sept 2022 Call (9/16/22) 120 Call for around $34
- Sell to open the AAPL Jul Week Four (7/23) 150 Call for around $1
- Set initial debit limit at $33
New Cost Basis: $33.87