I am recommending we roll our Best Buy (BBY), First Solar (FSLR) and Mosaic Company (MOS) calls out two weeks to generate more income and reduce our cost basis on the positions. We continue to target a mix of cash and appreciation.
These stocks are trading 3% to 6% lower than when we sold calls one week ago despite the broader market gaining. But keep in mind that these are high-beta stocks, and their higher levels of volatility translate to higher premiums for option sellers.
BBY Jul Week One (7/1) 72.50 Call
Current Stock Price: $66.96
Cost Basis: $94.89
Action:
- Buy to close the BBY Jul Week One (7/1) 72.50 Call for around $0.06
- Sell to open the BBY Jul Monthly (7/15) 70 Call for around $1.40
- Set initial credit limit at $1.34, but adjust as needed to roll today
New Cost Basis: $93.55
FSLR Jul Week One (7/1) 70 Call
Current Stock Price: $65.69
Cost Basis: $83.67
Action:
- Buy to close the FSLR Jul Week One (7/1) 70 Call for around $0.13
- Sell to open the FSLR Jul Monthly (7/15) 70 Call for around $1.16
- Set initial credit limit at $1.03, but adjust as needed to roll today
New Cost Basis: $82.64
MOS Jul Week One (7/1) 53 Call
Note: No action is needed on the MOS Jul Week One (7/1) 45 Put at this time.
Current Stock Price: $47.95
Cost Basis: $62.03
Action:
- Buy to close the MOS Jul Week One (7/1) 53 Call for around $0.08
- Sell to open the MOS Jul Monthly (7/15) 50 Call for around $1.60
- Set initial credit limit at $1.52, but adjust as needed to roll today
New Cost Basis: $60.51