Let’s roll our Micron Technology (MU) call out one week to generate more income and reduce our cost basis on the position.
Current Stock Price: $56.06
Cost Basis $68.26/$64.81
- Buy to close the MU Nov Week Two (11/11) 58 Call for around $0.42
- Sell to open the MU Nov Monthly (11/18) 58 Call for around $1.06
- Set initial credit limit at $0.64, but adjust as needed to roll today
New Cost Basis: $67.62/$64.17