I am recommending we roll our Best Buy (BBY), Micron Technology (MU) and SPDR S&P Biotech ETF (XBI) calls to lower strikes while keeping the expiration date the same. This will allow us to generate more income and reduce our cost basis on the positions.
BBY Apr Week Five (4/29) 96 Call
Current Stock Price: $93.30
Cost Basis: $98.50
Action:
- Buy to close the BBY Apr Week Five (4/29) 96 Call for around $0.54
- Sell to open the BBY Apr Week Five (4/29) 94 Call for around $1.19
- Set initial credit limit at $0.65, but adjust as needed to roll today
New Cost Basis: $97.85
MU Apr Week Five (4/29) 75 Call
Note: No action is needed on the MU Apr Week Five (4/29) 65/60 Put Spread at this time.
Current Stock Price: $66.73
Cost Basis: $75.51
Action:
- Buy to close the MU Apr Week Five (4/29) 75 Call for around $0.04
- Sell to open the MU Apr Week Five (4/29) 69 Call for around $0.58
- Set initial credit limit at $0.54, but adjust as needed to roll today
New Cost Basis: $74.97
XBI April Week Five (4/29) 87.50 Call
Current Stock Price: $76.63
Cost Basis: $97.11
Action:
- Buy to close the XBI Apr Week Five (4/29) 87.50 Call for around $0.03
- Sell to open the XBI Apr Week Five (4/29) 79 Call for around $0.67
- Set initial credit limit at $0.64, but adjust as needed to roll today
New Cost Basis: $96.47