I am recommending we roll our Apple (AAPL), Applied Materials (AMAT) and Micron Technology (MU) calls out one week to generate more income and decrease our cost basis on the positions.
With AAPL and AMAT, we are also reducing the strike price of the calls.
AAPL Oct Week Two (10/14) 155 Call
Current Stock Price: $138.70
Cost Basis: $157.84
Action:
- Buy to close the AAPL Oct Week Two (10/14) 155 Call for around $0.02
- Sell to open the AAPL Oct Monthly (10/21) 145 Call for around $34
- Set initial credit limit at $1.32, but adjust as needed to roll today
New Cost Basis: $156.52
AMAT Oct Week Two (10/14) 90 Call
Current Stock Price: $76.46
Cost Basis: $95.51
Action:
- Buy to close the AMAT Oct Week Two (10/14) 90 Call for around $0.02
- Sell to open the AMAT Oct Monthly (10/21) 80 Call for around $1.67
- Set initial credit limit at $1.65, but adjust as needed to roll today
New Cost Basis: $93.86
MU Oct Week Two (10/14) 55 Call
Current Stock Price: $53.01
Cost Basis: $66.04/$69.49
Action:
- Buy to close the MU Oct Week Two (10/14) 55 Call for around $0.52
- Sell to open the MU Oct Monthly (10/21) 55 Call for around $1.18
- Set initial credit limit at $0.66, but adjust as needed to roll today
New Cost Basis: $65.38/$68.83