I am recommending we roll the short leg of our Best Buy (BBY) LEAP call recovery position out two weeks to generate more income and reduce our cost basis on the position.
Note: No action is needed on the BBY Jan 2024 (1/19/24) 50 Calls at this time.
Current Stock Price: $66.82
Cost Basis: $86.51
- Buy to close 3 BBY Oct Week Four (10/28) 70 Calls for around $0.12 each ($0.36 total)
- Sell to open 3 BBY Nov Week Two (11/11) 70 Calls for around $1.20 each ($3.60 total)
- Set initial credit limit at $1.08 ($3.24 total), but adjust as needed to roll today
New Cost Basis: $83.27