I am recommending we roll our January monthly Apple (AAPL) and Target (TGT) calls to lower strike prices while keeping the expiration date the same. This will allow us to generate more income and reduce our cost basis on these long-term positions.
AAPL Jan Monthly (1/20) 150 Call
Current Stock Price: $126.71
Cost Basis: $150.18
Action:
- Buy to close the AAPL Jan Monthly (1/20) 150 Call for around $0.07
- Sell to open the AAPL Jan Monthly (1/20) 135 Call for around $0.88
- Set initial credit limit at $0.81, but adjust as needed to roll today
New Cost Basis: $149.37
TGT Jan 2024 Monthly (1/19/24) 150/Jan Monthly (1/20) 170 Call Spread
Note: No action is needed on the TGT Jan 2024 Monthly (1/19/24) 150 Call at this time.
Current Stock Price: $152.61
Cost Basis: $40.99
Action:
- Buy to close the TGT Jan Monthly (1/20) 170 Call for around $0.30
- Sell to open the TGT Jan Monthly (1/20) 160 Call for around $1.65
- Set initial credit limit at $1.35, but adjust as needed to roll today
New Cost Basis: $39.64