The market has not been kind to tech stocks, including Apple (AAPL), Marvell Technology Group (MRVL) and Micron Technology (MU).
But with them running up today, I am recommending we roll our call positions on these stocks out one week to generate more cash.
AAPL May Week Two (51/4) 128 Call
Current Stock Price: $125.52
Cost Basis: $127.38
Action:
- Buy to close the AAPL May Week Two (51/4) 128 Call for around $0.19
- Sell to open the AAPL May Monthly (5/21) 128 Call for around $1.15
- Set your initial credit limit at $0.96, but adjust as needed to roll today
New Cost Basis: $126.42
Expiration: After the close on Friday, May 21
Potential Rate of Return: 1.2% in 102 days, or 4.2% annualized, if shares are called away
MRVL May Week Two (5/14) 44 Call
Current Stock Price: $41.77
Cost Basis: $50.82
Action:
- Buy to close the MRVL May Week Two (5/14) 44 Call for around $0.07
- Sell to open the MRVL May Monthly (5/21) 44 Call for around $0.34
- Set your initial credit limit at $0.27, but adjust as needed to roll today
New Cost Basis: $50.55
Expiration: After the close on Friday, May 21
Potential Rate of Return: I am targeting breakeven for this position
MU May Week Two (5/14) 80 Call
Current Stock Price: $77.92
Cost Basis: $87.88
Action:
- Buy to close the MU May Week Two (5/14) 80 Call for around $0.25
- Sell to open the MU May Monthly (5/21) 80 Call for around $1.10
- Set your initial credit limit at $0.85, but adjust as needed to roll today
New Cost Basis: $87.03
Expiration: After the close on Friday, May 21
Potential Rate of Return: I am targeting breakeven for this position