I am recommending we roll our Western Digital (WDC) and Yeti Holdings (YETI) calls out one week and to higher strikes. This will allow us to capture more potential appreciation.
Note that Western Digital is expected to report earnings on Oct. 28. We will close the trade prior to that and reopen after the announcement if necessary.
WDC Oct Week Four (10/22) 57.50 Call
Current Stock Price: $56.28
Cost Basis: $58.27
Action:
- Buy to close the WDC Oct Week Four (10/22) 57.50 Call for around $0.16
- Sell to open the WDC Oct Week Five (10/29) 58 Call for around $1.26
- Set your initial credit limit at $1.10, but adjust as needed to roll today
New Cost Basis: $57.17
YETI Oct Week Four (10/22) 89 Call
Current Stock Price: $91.86
Cost Basis: $93.80
Action:
- Buy to close the YETI Oct Week Four (10/22) 89 Call for around $2.98
- Sell to open the YETI Oct Week Five (10/29) 90 Call for around $2.98
- Set your initial credit limit at $0, but adjust as needed to roll today
New Cost Basis: $93.80