I am recommending we roll our Best Buy (BBY), CVS Health (CVS), Micron Technology (MU) and SPDR S&P Biotech ETF (XBI) positions out one week to generate more income and/or reduce our cost basis.
BBY Apr Week One (4/1) 100 Call
Current Stock Price: $90.33
Cost Basis: $100.90
Action:
- Buy to close the BBY Apr Week One (4/1) 100 Call for around $0.01
- Sell to open the BBY Apr Week Two (4/8) 95 Call for around $0.40
- Set initial credit limit at $0.39, but adjust as needed to roll today
New Cost Basis: $100.51
CVS Apr Week One (4/1) 103 Put
Current Stock Price: $101.50
Cash in Hand: $0.54
Action:
- Buy to close the CVS Apr Week One (4/1) 103 Put for around $1.54
- Sell to open the CVS Apr Week Two (4/8) 103 Put for around $2.15
- Set initial credit limit at $0.61, but adjust as needed to roll today
New Cash in Hand: $1.15
MU Apr Week One (4/1) 79 Put
Current Stock Price: $76.16
Cash in Hand: $0.45
Action:
- Buy to close the MU Apr Week One (4/1) 79 Put for around $3
- Sell to open the MU Apr Week Two (4/8) 79 Put for around $3.90
- Set initial credit limit at $0.90, but adjust as needed to roll today
New Cash in Hand: $1.35
XBI Apr Week One (4/1) 92 Call
Current Stock Price: $91.35
Cost Basis: $101.57
Action:
- Buy to close the XBI Apr Week One (4/1) 92 Call for around $0.33
- Sell to open the XBI Apr Week Two (4/8) 92 Call for around $1.84
- Set initial credit limit at $1.51, but adjust as needed to roll today
New Cost Basis: $100.06