I am recommending we roll our Applied Materials (AMAT) and Micron Technology (MU) calls out two weeks and to higher strike prices following the rally in the underlying stocks.
AMAT Oct Week Four (10/28) 82 Call
Current Stock Price: $89.60
Cost Basis: $93.50
Action:
- Buy to close the AMAT Oct Week Four (10/28) 82 Call for around $7.70
- Sell to open the AMAT Nov Week Two (11/11) 84 Call for around $7.52
- Set initial debit limit at $0.18, but adjust as needed to roll today
New Cost Basis: $93.68
MU Oct Week Four (10/28) 56 Call
Current Stock Price: $55.78
Cost Basis: $64.85/$68.30
Action:
- Buy to close the MU Oct Week Four (10/28) 56 Call for around $0.86
- Sell to open the MU Nov Week Two (11/11) 58 Call for around $0.90
- Set initial credit limit at $0.04, but adjust as needed to roll today
New Cost Basis: $64.81/$68.26