I am recommending we roll our Corning (GLW), KB Home (KBH), SPDR S&P Regional Banking ETF (KRE), Target (TGT) and Western Digital (WDC) calls. The income we generate will reduce our cost basis on the positions.
GLW Sep Monthly (9/17) 39 Call
Current Stock Price: $38.47
Cost Basis: $39.33
Action:
- Buy to close the GLW Sep Monthly (9/17) 39 Call for around $0.12
- Sell to open the GLW Sep Week Four (9/24) 38 Call for around $0.84
- Set initial credit limit at $0.72
New Cost Basis: $38.61
KBH Sep Monthly (9/17) 42 Call
Current Stock Price: $40.74
Cost Basis: $44.83
Action:
- Buy to close the KBH Sep Monthly (9/17) 42 Call for around $0.10
- Sell to open the KBH Oct Monthly (10/15) 42 Call for around $1.35
- Set initial credit limit at $1.25
New Cost Basis: $43.58
KRE Sep Monthly (9/17) 65 Call
Current Stock Price: $63.34
Cost Basis: $65.70
Action:
- Buy to close the KRE Sep Monthly (9/17) 65 Call for around $0.12
- Sell to open the KRE Oct Week One (10/1) 65 Call for around $0.69
- Set initial credit limit at $0.57
New Cost Basis: $65.13
TGT Jan 2023 (1/20/23) 200/Sep Monthly (9/17) 250 Call Spread
Note: No action is needed on the TGT Jan 2023 (1/20/23) 200 Call at this time.
Current Stock Price: $243.20
Cost Basis: $57
Action:
- Buy to close the TGT Sep Monthly (9/17) 250 Call for around $0.15
- Sell to open the TGT Sep Week Four (9/24) 247.50 Call for around $1.30
- Set initial credit limit at $1.15
New Cost Basis: $55.85
WDC Sep Monthly (9/17) 60 Call
Current Stock Price: $57.64
Cost Basis: $61.72 (Note that the cost basis was incorrectly listed as $63.36 in the previous alert.)
Action:
- Buy to close the WDC Sep Monthly (9/17) 60 Call for around $0.30
- Sell to open the WDC Sep Week Four (9/24) 60 Call for around $0.80
- Set initial credit limit at $0.50
New Cost Basis: $61.22