I am recommending we roll our Best Buy (BBY), Micron Technology (MU) and SPDR S&P Biotech ETF (XBI) calls out two weeks to generate more income and, in the case of BBY and XBI, capture more potential appreciation.
BBY Apr Week Five (4/29) 94 Call
Current Stock Price: $93.22
Cost Basis: $97.85
Action:
- Buy to close the BBY Apr Week Five (4/29) 94 Call for around $0.81
- Sell to open the BBY May Week Two (5/13) 98 Call for around $1.46
- Set initial credit limit at $0.65, but adjust as needed to roll today
New Cost Basis: $97.20
MU Apr Week Five (4/29) 69 Call
Note: No action is needed on the MU Apr Week Five (4/29) 65/60 Put Spread at this time.
Current Stock Price: $67.72
Cost Basis: $74.97
Action:
- Buy to close the MU Apr Week Five (4/29) 69 Call for around $0.51
- Sell to open the MU May Week Two (5/13) 69 Call for around $2.45
- Set initial credit limit at $1.94, but adjust as needed to roll today
New Cost Basis: $73.03
XBI Apr Week Five (4/29) 79 Call
Current Stock Price: $72.92
Cost Basis: $96.47
Action:
- Buy to close the XBI Apr Week Five (4/29) 79 Call for around $0.05
- Sell to open the XBI May Week Two (5/13) 80 Call for around $0.88
- Set initial credit limit at $0.83, but adjust as needed to roll today
New Cost Basis: $95.64