I am recommending we roll our Micron Technology (MU), Nike (NKE) and SPDR S&P Biotech ETF (XBI) calls out one week and to lower strikes to generate more income and reduce our cost basis on the positions.
MU May Week Four (5/27) 71 Call
Note: No action is needed on our MU May Week Four (5/27) 65 Put at this time.
Current Stock Price: $67.31
Cost Basis: $72.40
Action:
- Buy to close the MU May Week Four (5/27) 71 Call for around $0.16
- Sell to open the MU Jun Week One (6/3) 70 Call for around $1.05
- Set initial credit limit at $0.89, but adjust as needed to roll today
New Cost Basis: $71.51
NKE May Week Four (5/27) 118 Call
Current Stock Price: $106.93
Cost Basis: $129.10
Action:
- Buy to close the NKE May Week Four (5/27) 118 Call for around $0.02
- Sell to open the NKE Jun Week One (6/3) 110 Call for around $1.46
- Set initial credit limit at $1.44, but adjust as needed to roll today
New Cost Basis: $127.66
XBI May Week Four (5/27) 72.50 Call
Current Stock Price: $66.14
Cost Basis: $93.85 (The cost basis was incorrectly listed as $93.88 in the previous alert.)
Action:
- Buy to close the XBI May Week Four (5/27) 72.50 Call for around $0.11
- Sell to open the XBI Jun Week One (6/3) 70 Call for around $1.03
- Set initial credit limit at $0.92, but adjust as needed to roll today
New Cost Basis: $92.93