I am recommending we roll our Moderna (MRNA) call out one week and to a lower strike to generate more income and reduce our cost basis on the position.
Given that the company is expected to report earnings on Nov. 3, we will either close the position temporarily or buy a protective put to hedge.
Current Stock Price: $121.10
Cost Basis: $164.12
- Buy to close the MRNA Oct Monthly (10/21) 135 Call for around $0.04
- Sell to open the MRNA Oct Week Four (10/28) 130 Call for around $1.69
- Set initial credit limit at $1.65, but adjust as needed to roll today
New Cost Basis: $162.47