Williams-Sonoma (WSM) is struggling but appears to have found support.
I am recommending we roll our call down 10 points to generate more income. This will lower our cost basis and result in a profit if shares are called away.
Current Stock Price: $106.26
Cost Basis: $105.95
- Buy to close the WSM Jan Monthly (1/15) 115 Call for around $0.40
- Sell to open the WSM Jan Monthly (1/15) 105 Call for around $3.30
- Set initial credit limit at $2.90
New Cost Basis: $103.05