I am recommending we roll our expiring call positions in Best Buy (BBY), Target (TGT) and Western Digital (WDC) to reduce our cost basis on the positions.
BBY Oct Week Two (10/8) 109 Call
Current Stock Price: $109.09
Cost Basis: $115.08
Action:
- Buy to close the BBY Oct Week Two (10/8) 109 Call for around $0.86
- Sell to open the BBY Oct Monthly (10/15) 110 Call for around $1.33
- Set initial credit limit at $0.47
New Cost Basis: $114.61
TGT Jan 2023 (1/20/23) 200/ Oct Week Two (10/8) 240 Call Spread
Note: No action is needed on the TGT Jan 2023 (1/20/23) 200 Call at this time.
Current Stock Price: $230.76
Cost Basis: $54.06
Action:
- Buy to close the TGT Oct Week Two (10/8) 240 Call for around $0.14
- Sell to open the TGT Oct Monthly (10/15) 235 Call for around $1.28
- Set initial credit limit at $1.14
New Cost Basis: $52.92
WDC Oct Week Two (10/8) 58 Call
Current Stock Price: $57.55
Cost Basis: $59.56
Action:
- Buy to close the WDC Oct Week Two (10/8) 58 Call for around $0.40
- Sell to open the WDC Oct Monthly (10/15) 58 Call for around $1.10
- Set initial credit limit at $0.70
New Cost Basis: $58.86