I am recommending we roll our Best Buy (BBY) and SPDR S&P Biotech ETF (XBI) calls out one week to generate more income and reduce our cost basis on the positions.
BBY Apr Week Two (4/8) 95 Call
Current Stock Price: $90.47
Cost Basis: $100.51
Action:
- Buy to close the BBY Apr Week Two (4/8) 95 Call for around $0.05
- Sell to open the BBY Apr Monthly (4/14) 95 Call for around $0.45
- Set initial credit limit at $0.40, but adjust as needed to roll today
New Cost Basis: $100.11
XBI Apr Week Two (4/8) 92 Call
Current Stock Price: $92.77
Cost Basis: $100.06
Action:
- Buy to close the XBI Apr Week Two (4/8) 92 Call for around $1.70
- Sell to open the XBI Apr Monthly (4/14) 92 Call for around $2.71
- Set initial credit limit at $1.01, but adjust as needed to roll today
New Cost Basis: $99.05