I am recommending we roll our Apple (AAPL) and Twitter (TWTR) calls up and out one to two weeks. This will generate more income to lower our cost basis on the positions. Plus, it will allow us to capture more potential appreciation in the underlying shares.
I am also recommending we roll our Micron Technology (MU) put simply to generate more income.
AAPL Apr Week Two (4/9) 125 Call
Current Stock Price: $129.33
Cost Basis: $128.43
Action:
- Buy to close the AAPL Apr Week Two (4/9) 125 Call for around $4.40
- Sell to open the AAPL Apr Week Four (4/23) 126 Call for around $4.60
- Set your initial credit limit at $0.20, but adjust as needed to roll today
New Cost Basis: $128.23
Expiration Date: After the close on Friday, April 23
Potential Rate of Return: I am targeting breakeven for this position
MU Apr Week Two (4/9) 90 Put
Current Stock Price: $94.39
Cash in Hand: $0.54
Action:
- Buy to close the MU Apr Week Two (4/9) 90 Put for around $0.08
- Sell to open the MU Apr Monthly (4/16) 92.50 Put for around $1.26
- Set your initial credit limit at $1.18, but adjust as needed to roll today
New Cash in Hand: $1.72
Expiration Date: After the close on Friday, April 16
Potential Rate of Return: 1.9% in 30 days, or 23% annualized, if this option expires worthless
TWTR April Week Two (4/9) 67.50 Call
Current Stock Price: $69.69
Cost Basis: $66.24
Action:
- Buy to close the TWTR Apr Week Two (4/9) 67.50 Call for around $2.26
- Sell to open the TWTR Apr Monthly (4/16) 68 Call for around $2.67
- Set your initial credit limit at $0.41, but adjust as needed to roll today
New Cost Basis: $65.83
Expiration Date: After the close on Friday, April 16
Potential Rate of Return: 2.9% in 60 days, or 18% annualized, if shares are called away