I am recommending we roll our call positions in Apple (AAPL), Gilead Sciences (GILD), Marvell Technology Group (MRVL) and Twitter (TWTR)
AAPL Mar Monthly (3/19) 128 Call
Current Stock Price: $121.79
Cost Basis: $131.02
Action:
- Buy to close the AAPL Mar Monthly (3/19) 128 Call for around $0.07
- Sell to open the AAPL Mar Week Four (3/26) 125 Call for around $1.36
- Set your initial credit limit at $1.29, but adjust as needed to roll today
New Cost Basis: $129.73
Expiration: After the close on Friday, March 26
Potential Rate of Return: I am targeting breakeven for this position
GILD Mar Monthly (3/19) 64 Call
Current Stock Price: $64.93
Cost Basis: $64.17
Action:
- Buy to close the GILD Mar Monthly (3/19) 64 Call for around $1.13
- Sell to open the GILD Apr Week One (4/1) 65 Call for around $1.28
- Set your initial credit limit at $0.15, but adjust as needed to roll today
New Cost Basis: $64.02
Expiration: After the close on Thursday, April 1
Potential Rate of Return: 1.5% in 51 days, or 11% annualized, if shares are called away
MRVL Mar Monthly (3/19) 50 Call
Current Stock Price: $46.97
Cost Basis: $49.46
Action:
- Buy to close the MRVL Mar Monthly (3/19) 50 Call for around $0.07
- Sell to open the MRVL Mar Week Four (3/26) 49 Call for around $0.65
- Set your initial credit limit at $0.58, but adjust as needed to roll today
New Cost Basis: $48.88
Expiration: After the close on Friday, March 26
Potential Rate of Return: 0.2% in 39 days, or 2% annualized, if shares are called away
TWTR Mar Monthly (3/19) 71 Call
Current Stock Price: $69.52
Cost Basis: $68.87
Action:
- Buy to close the TWTR Mar Monthly (3/19) 71 Call for around $0.45
- Sell to open the TWTR Mar Week Four (3/26) 70 Call for around $1.96
- Set your initial credit limit at $1.51, but adjust as needed to roll today
New Cost Basis: $67.37
Expiration: After the close on Friday, March 26
Potential Rate of Return: 3.5% in 39 days, or 33% annualized, if shares are called away