I am recommending we roll the short leg of our VanEck Vectors Semiconductor ETF (SMH) LEAP call spread out two weeks to generate more income and reduce our cost basis on the position.
Note: No action is needed on the SMH Jan 2023 (1/20/23) 250 Call at this time.
Current Stock Price: $225.79
Current Cost Basis: $52.40
- Buy to close the SMH May Week Four (5/27) 250 Call for around $0.05
- Sell to open the SMH Jun Week Two (6/10) 250 Call for around $0.97
- Set initial credit limit at $0.92, but adjust as needed to roll today
New Cost Basis: $51.48