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
