I had planned to reset our VanEck Vectors Semiconductor ETF (SMH) LEAP call spread. However, given the runup in the ETF over the past month, I have instead decided to recommend selling a call against the existing LEAP to reduce our cost basis on the position.
We may still roll the LEAP next month depending on how SMH trades.
Note: No action is needed on the SMH Jan 2023 (1/20/23) 250 Call at this time.
Current Stock Price: $240.92
Cost Basis: $52.24
Action: Sell to open the SMH Aug Monthly (8/19) 250 Call for around $2.62, but adjust as needed to sell a call today
New Cost Basis: $49.62