Best Buy (BBY) is set to report earnings tomorrow. I am recommending we roll our call out two weeks and to a higher strike price to capture more potential appreciation.
Let’s also spend some cash to buy a protective put in case shares sell off following the announcement.
Current Stock Price: $100.61
Cost Basis: $100.53
- Buy to close the BBY Mar Week One (3/4) 100 Call for around $6.10
- Sell to open the BBY Mar Monthly (3/18) 102 Call for around $6.10
- Set initial credit limit at $0, but adjust as needed to roll today
- Buy to open the BBY Mar Week One (3/4) 90 Put for around $1.74, but adjust as needed to buy a put today
New Cost Basis: $102.27