I am recommending we roll our Crocs (CROX), D.R. Horton (DHI) and Yeti Holdings (YETI) calls down while keeping the same expiration date. The goal is to generate one more slug of cash before being called out of our shares.
My plan is to initiate recovery positions on these names next week using LEAP call spreads.
CROX Mar Monthly (3/18) 90 Call
Current Stock Price: $76.65
Cost Basis: $142.20
Action:
- Buy to close the CROX Mar Monthly (3/18) 90 Call for around $0.05
- Sell to open the CROX Mar Monthly (3/18) 75 Call for around $2.50
- Set initial credit limit at $2.45, but adjust as needed to roll today
New Cost Basis: $139.75
DHI Mar Monthly (3/18) 87.50 Call
Current Stock Price: $81.31
Cost Basis: $98.69
Action:
- Buy to close the DHI Mar Monthly (3/18) 87.50 Call for around $0.15
- Sell to open the DHI Mar Monthly (3/18) 81 Call for around $1.30
- Set initial credit limit at $1.15, but adjust as needed to roll today
New Cost Basis: $97.54
YETI Mar Monthly (3/18) 65 Call
Current Stock Price: $60.48
Cost Basis: $86.94
Action:
- Buy to close the YETI Mar Monthly (3/18) 65 Call for around $0.05
- Sell to open the YETI Mar Monthly (3/18) 60 Call for around $1.22
- Set initial credit limit at $1.17, but adjust as needed to roll today
New Cost Basis: $85.77