I am recommending we roll our Apple (AAPL) and Generac Holdings (GNRC) calls out to the January monthly expiration and to higher strike prices to capture a mix of income and potential appreciation.
Today’s decline in GNRC is much bigger than the sell-off in the broader market, but as you know, this is a volatile stock that we are trading for the long term.
AAPL Dec Monthly (12/16) 145 Call
Current Stock Price: $137.54
Cost Basis: $151.66
Action:
- Buy to close the AAPL Dec Monthly (12/16) 145 Call for around $0.07
- Sell to open the AAPL Jan Monthly (1/20) 150 Call for around $1.55
- Set initial credit limit at $1.48, but adjust as needed to roll today
New Cost Basis: $150.18
GNRC Dec Monthly (12/16) 100 Call
Current Stock Price: $92.68
Cost Basis: $103.71
Action:
- Buy to close the GNRC Dec Monthly (12/16) 100 Call for around $0.10
- Sell to open the GNRC Jan Monthly (1/20) 105 Call for around $2.75
- Set initial credit limit at $2.65, but adjust as needed to roll today
New Cost Basis: $101.06