CVS Health (CVS) and Walt Disney (DIS) have continued to sell off with the broader market. I am recommending we roll our calls down and out one week to generate income and reduce our cost basis on the positions.
CVS Mar Monthly (3/17) 83 Call
Current Stock Price: $75.37
Cost Basis: $87.77
Action:
- Buy to close the CVS Mar Monthly (3/17) 83 Call for around $0.01
- Sell to open the CVS Mar Week Four (3/24) 77 Call for around $0.60
- Set initial credit limit at $0.59, but adjust as needed to roll today
New Cost Basis: $87.18
DIS Mar Monthly (3/17) 105 Call
Current Stock Price: $93.47
Cost Basis: $107.83
Action:
- Buy to close the DIS Mar Monthly (3/17) 105 Call for around $0.02
- Sell to open the DIS Mar Week Four (3/24) 95 Call for around $1.35
- Set initial credit limit at $1.33, but adjust as needed to roll today
New Cost Basis: $106.50