I am recommending we roll our VanEck Vectors Semiconductor ETF (SMH) and SPDR S&P Biotech ETF (XBI) calls out two weeks to generate cash and reduce our cost basis on the positions.
SMH Jan 2023 (1/20/23) 250/Mar Week Two (3/11) 270 Call Spread
Note: No action is needed on the SMH Jan 2023 (1/20/23) 250 Call at this time.
Current Stock Price: $247.69
Cost Basis: $63.60
Action:
- Buy to close the SMH Mar Week Two (3/11) 270 Call for around $0.02
- Sell to open the SMH Mar Week Four (3/25) 260 Call for around $3.97
- Set initial credit limit at $3.95, but adjust as needed to roll today
Cost Basis: $59.65
XBI Mar Week Two (3/11) 90 Call
Current Stock Price: $86.44
Cost Basis: $103.37
Action:
- Buy to close the XBI Mar Week Two (3/11) 90 Call for around $0.14
- Sell to open the XBI Mar Week Four (3/25) 90 Call for around $1.73
- Set initial credit limit at $1.59, but adjust as needed to roll today
Cost Basis: $101.78