I am recommending we roll our SPDR S&P Biotech ETF (XBI) and Yeti Holdings (YETI) calls out two weeks to generate more income and reduce our cost basis on the positions.
XBI Feb Monthly (2/18) 97 Call
Current Stock Price: $92.23
Cost Basis: $106.98
Action:
- Buy to close the XBI Feb Monthly (2/18) 97 Call for around $0.12
- Sell to open the XBI Mar Week One (3/4) 95 Call for around $1.32
- Set initial credit limit at $1.20, but adjust as needed to roll today
New Cost Basis: $105.78
YETI Feb Monthly (2/18) 70 Call
Current Stock Price: $62.44
Cost Basis: $90.29
Action:
- Buy to close the YETI Feb Monthly (2/18) 70 Call for around $0.10
- Sell to open the YETI Mar Week One (3/4) 65 Call for around $1.80
- Set initial credit limit at $1.70, but adjust as needed to roll today
New Cost Basis: $88.59