JPMorgan Chase (JPM) continues to move higher. Let’s roll our put up again while keeping the expiration date the same to turn our net debit into cash in hand.
I am also recommending we roll our Micron Technology (MU) and SPDR S&P Biotech ETF (XBI) calls out one week to generate more income and reduce our cost basis on the positions.
JPM Apr Week Four (4/22) 127 Put
Current Stock Price: $132.94
Net Debit: $0.18
Action:
- Buy to close the JPM Apr Week Four (4/22) 127 Put for around $0.07
- Sell to open the JPM Apr Week Four (4/22) 130 Put for around $0.27
- Set initial credit limit at $0.20, but adjust as needed to roll today
Cash in Hand: $0.02
MU Apr Week Four (4/22) 75 Call
Note: No action is needed on the MU Apr Week Five (4/29) 65/60 Put Spread at this time.
Current Stock Price: $73.51
Cost Basis: $76.41
Action:
- Buy to close the MU Apr Week Four (4/22) 75 Call for around $0.53
- Sell to open the MU Apr Week Five (4/29) 75 Call for around $1.43
- Set initial credit limit at $0.90, but adjust as needed to roll today
New Cost Basis $75.51
XBI Apr Week Four (4/22) 92 Call
Current Stock Price: $84.41
Cost Basis: $98.20
Action:
- Buy to close the XBI Apr Week Four (4/22) 92 Call for around $0.05
- Sell to open the XBI Apr Week Five (4/29) 87.50 Call for around $1.14
- Set initial credit limit at $1.09, but adjust as needed to roll today
New Cost Basis $97.11