Micron Technology (MU) is grinding its way higher, so I am recommending we roll our call out two weeks and to a higher strike price.
At the current midpoints, this is a cash-neutral roll. But if you need to spend some cash to roll, that’s OK. It will be worth it to capture an additional $2 in potential appreciation.
Current Stock Price: $63.33
Cost Basis: $67.88/$71.33
- Buy to close the MU Aug Week One (8/5) 62 Call for around $1.78
- Sell to open the MU Aug Monthly (8/19) 64 Call for around $1.78
- Set initial credit limit at $0, but adjust as needed to roll today
New Cost Basis: $67.88/$71.33