I am recommending we roll our SPDR S&P Biotech ETF (XBI) call out two weeks and to a higher strike price. This will allow us to generate more income and reduce our cost basis on the position, as well as capture more potential appreciation.
Our protective put remains in place for another day.
Note: No action is needed on the XBI Jun Week Four (6/24) 55 Put at this time.
Current Stock Price: $73.29
Cost Basis: $91.13
- Buy to close the XBI Jun Week Four (6/24) 74 Call for around $0.89
- Sell to open the XBI Jul Week Two (7/8) 75 Call for around $2.25
- Set initial credit limit at $1.36, but adjust as needed to roll today
New Cost Basis: $89.77