Our Nike (NKE) recovery position is working out well. The stock has rebounded from its late-September lows, and it’s possible we could book a profit soon if shares continue to hold up.
I am recommending we roll the short leg of our LEAP call spread out to the January monthly expiration to generate more cash and reduce our cost basis on the position.
Note: No action is needed on the NKE Jan 2024 (1/19/24) 90 Calls at this time.
Current Stock Price: $108.51
Cost Basis: $98.68
- Buy to close the 3 NKE Dec Monthly (12/16) 115 Calls for around $0.04 each ($0.12 total)
- Sell to open 3 NKE Jan Monthly (1/20) 115 Calls for around $3.05 each ($9.15 total)
- Set initial credit limit at $3.01 ($9.03 total), but adjust as needed to roll today
New Cost Basis: $89.65