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 Jun Week One (6/3) 80 Call
Current Stock Price: $80.02
Cost Basis: $96.36
Action:
- Buy to close the BBY Jun Week One (6/3) 80 Call for around $0.94
- Sell to open the BBY Jun Week Two (6/10) 81 Call for around $1.58
- Set initial credit limit at $0.64, but adjust as needed to roll today
New Cost Basis: $95.72
XBI Jun Week One (6/3) 70 Call
Current Stock Price: $67.82
Cost Basis: $92.93
Action:
- Buy to close the XBI Jun Week One (6/3) 70 Call for around $0.26
- Sell to open the XBI Jun Week Two (6/10) 70 Call for around $1.28
- Set initial credit limit at $1.02, but adjust as needed to roll today
New Cost Basis: $91.91