Let’s roll our Microsoft (MSFT) and Starbucks (SBUX) positions. Premiums are in our favor.

MSFT Oct Week Two (10/9) 210 Call

Current Stock Price: $213.16

Cost Basis: $208.58

Action:

• Buy to close the MSFT Oct Week Two (10/9) 210 Call for around $3.25
• Sell to open the MSFT Oct Monthly (10/16) 210 Call for around $4.85
• Set initial credit limit at $1.60

New Cost Basis: $206.98

SBUX Oct Week Two (10/9) 85 Put

Current Stock Price: $89.70

Net Debit: $13.26

Action:

• Buy to close the SBUX Oct Week Two (10/9) 85 Put for around $0.02
• Sell to open the SBUX Oct Monthly (10/16) 88 Put for around $0.59
• Set initial credit limit at $0.57

New Net Debit: $12.69