I am recommending we roll our Apple (AAPL) and General Motors (GM) positions.
Our Gilead Sciences (GILD) shares are on track to be called away at a profit. However, if the stocks happens to close below $65, our call will expire worthless and we will sell another one soon.
Finally, our Marvell Technology Group (MRVL) call is in the money. Rather than roll the call up, I am recommending we allow our shares to be called away. We will sell a put on the stock soon to reduce our net debit.
AAPL Apr Week One (4/1) 124 Call
Current Stock Price: $123.44
Cost Basis: $129.14
Action:
- Buy to close the AAPL Apr Week One (4/1) 124 Call for around $0.25
- Sell to open the AAPL Apr Week Two (4/9) 125 Call for around $0.96
- Set your initial credit limit at $0.71, but adjust as needed to roll today
New Cost Basis: $128.43
Expiration: After the close on Friday, April 9
Potential Rate of Return: I am targeting breakeven for this position
GILD Apr Week One (4/1) 65 Call
Current Stock Price: $66.01
Cost Basis: $64.02
Action: Allow shares to be called away
Profit: $0.98, or $98 per contract
Rate of Return: 1.5%, in 52 days, or 10% on an annualized basis
GM Apr Week One (4/1) 56.50 Put
Current Stock Price: $57.36
Cash in Hand: $0.36
Action:
- Buy to close the GM Apr Week One (4/1) 56.50 Put for around $0.15
- Sell to open the GM Apr Week Two (4/9) 56 Put for around $0.73
- Set your initial credit limit at $0.58, but adjust as needed to roll today
New Cash in Hand: $0.94
Expiration: After the close on Friday, April 9
Potential Rate of Return: 1.7% in 11 days, or 56% annualized, if this put expires worthless
MRVL Apr Week One (4/1) 45 Call
Current Stock Price: $49.44
Cost Basis: $48.18
Action: Allow shares to be called away
Net Debit: $3.18
Potential Rate of Return: I am targeting breakeven for this position