Let’s roll the short leg of our Best Buy (BBY) LEAP call recovery position 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: $68.74
Cost Basis $83.27
- Buy to close 3 BBY Nov Week Two (11/11) 70 Calls for around $0.62 each ($1.86 total)
- Sell to open 3 BBY Nov Monthly (11/18) 70 Calls for around $46 ($4.38 total)
- Set initial credit limit at $0.84 ($2.52 total), but adjust as needed to roll today
New Cost Basis: $80.75