I am recommending we roll our calls on Crocs (CROX) and Yeti Holdings (YETI). With CROX, we are rolling to a much lower strike to generate income. And with YETI, we are rolling out one week and to a higher strike to capture more potential appreciation.
Both companies are scheduled to report earnings later this month. We will either close the positions before the respective announcements and reopen them after, or buy protective puts.
CROX Feb Monthly (2/18) 140 Call
Current Stock Price: $104.11
Cost Basis: $147.30
- Buy to close the CROX Feb Monthly (2/18) 140 Call for around $0.35
- Sell to open the CROX Feb Monthly (2/18) 115 Call for around $2.90
- Set initial credit limit at $2.55, but adjust as needed to roll today
New Cost Basis: $144.75
YETI Feb Week One (2/4) 65 Call
Current Stock Price: $67.60
Cost Basis: $90.34
- Buy to close the YETI Feb Week One (2/4) 65 Call for around $3.05
- Sell to open the YETI Feb Week Two (2/11) 66 Call for around $3.15
- Set your initial credit limit at $0.10, but adjust as needed to roll today
New Cost Basis: $90.24