We have a number of call positions expiring this week.
Our CVS Health (CVS) and Walt Disney (DIS) calls are in the money. Let’s roll them out two weeks and to higher strike prices.
Our Expedia (EXPE) call is currently on track to expire worthless. Let’s roll it out one week to generate income and reduce our cost basis on the position.
CVS Apr Week One (4/6) 75 Call
Current Stock Price: $77.36
Cost Basis: $86.56
Action:
- Buy to close the CVS Apr Week One (4/6) 75 Call for around $2.40
- Sell to open the CVS Monthly (4/21) 76 Call for around $2.18
- Set initial debit limit at $0.22, but adjust as needed to roll today
New Cost Basis: $86.78
DIS Apr Week One (4/6) 97 Call
Current Stock Price: $99.64
Cost Basis: $106.26
Action:
- Buy to close the DIS Apr Week One (4/6) 97 Call for around $2.71
- Sell to open the DIS Apr Monthly (4/21) 98 Call for around $3.35
- Set initial credit limit at $0.64, but adjust as needed to roll today
New Cost Basis: $105.62
EXPE Apr Week One (4/6) 95 Call
Current Stock Price: $90.98
Cost Basis: $102.57
Action:
- Buy to close the EXPE Apr Week One (4/6) 95 Call for around $0.08
- Sell to open the EXPE Week Two (4/14) 95 Call for around $0.83
- Set initial credit limit at $0.75, but adjust as needed to roll today
New Cost Basis: $101.82