Micron Technology (MU) has run up over the past week.
For those in the put position, I am recommending we roll out one week and to a higher strike. The income we generate will turn our net debit into cash in hand.
And for those in the covered call position, I am recommending we roll out one week and to a higher strike to capture more potential appreciation. While we will have to spend some cash to do so, we will be called out at a profit if shares close above $74 at expiration.
MU Jun Week One (6/3) 69 Put
Current Stock Price: $74.13
Net Debit: $0.59
Action:
- Buy to close the MU Jun Week One (6/3) 69 Put for around $0.11
- Sell to open the MU Jun Week Two (6/10) 71 Put for around $1.01
- Set initial credit limit at $0.90, but adjust as needed to roll today
New Cash in Hand: $0.31
MU Jun Week One (6/3) 70 Call
Cost Basis: $71.51
Action:
- Buy to close the MU Jun Week One (6/3) 70 Call for around $4.33
- Sell to open the MU Jun Week Two (6/10) 74 Call for around $2.21
- Set initial debit limit at $2.12, but adjust as needed to roll today
New Cost Basis: $73.63