Crocs (CROX) and Williams-Sonoma (WSM) have run up. I am recommending we roll our puts up to higher strikes, while keeping the expiration date the same, to generate more income.
If you are not in the current positions and want to enter these trades, you can sell the higher-strike puts. Just be aware that we will be managing and tracking them as ongoing positions.
I am also recommending we roll our Western Digital (WDC) call out two weeks to pick up some cash and a buck in potential appreciation.
CROX Nov Monthly (11/19) 155 Put
Current Stock Price: $179.07
Net Debit: $1.70
Action:
- Buy to close the CROX Nov Monthly (11/19) 155 Put for around $0.75
- Sell to open the CROX Nov Monthly (11/19) 165 Put for around $2
- Set initial credit limit at $1.25, but adjust as needed to roll today
New Net Debit: $0.45
WDC Nov Week One (11/5) 55 Call
Current Stock Price: $55.17
Cost Basis: $56.52
Action:
- Buy to close the WDC Nov Week One (11/5) 55 Call for around $0.70
- Sell to open the WDC Nov Monthly (11/19) 56 Call for around $1.23
- Set initial credit limit at $0.53, but adjust as needed to roll today
New Cost Basis: $55.99
WSM Nov Monthly (11/19) 175 Put
Note: No action is needed on the WSM Nov Monthly (11/19) 165/160 Put Spread at this time.
Current Stock Price: $206.11
Cash in Hand: $5.55
Action:
- Buy to close the WSM Nov Monthly (11/19) 175 Put for around $1.70
- Sell to open the WSM Nov Monthly (11/19) 185 Put for around $3.25
- Set initial credit limit at $1.55, but adjust as needed to roll today
New Cash in Hand: $7.10