I am recommending we roll our Applied Materials (AMAT) and Micron Technology (MU) calls out one week and to higher strike prices. This will allow us to capture more potential appreciation and generate some income to reduce our cost basis on the positions.
AMAT Oct Monthly (10/21) 80 Call
Current Stock Price: $80.80
Cost Basis: $93.86
Action:
- Buy to close the AMAT Oct Monthly (10/21) 80 Call for around $1.73
- Sell to open the AMAT Oct Week Four (10/28) 82 Call for around $2.09
- Set initial credit limit at $0.36, but adjust as needed to roll today
New Cost Basis: $93.50
MU Oct Monthly (10/21) 55 Call
Current Stock Price: $54.66
Cost Basis: $65.38/$68.83
Action:
- Buy to close the MU Oct Monthly (10/21) 55 Call for around $0.56
- Sell to open the MU Oct Week Four (10/28) 56 Call for around $1.10
- Set initial credit limit at $0.53, but adjust as needed to roll today
New Cost Basis: $64.85/$68.30