I am recommending we roll our Bank of America (BAC) and Citigroup (C) calls out two weeks to avoid being called out of shares and to generate more cash.
BAC Mar Week Four (3/25) 41 Call
Current Stock Price: $43.29
Cost Basis: $45.85
Action:
- Buy to close the BAC Mar Week Four (3/25) 41 Call for around $2.32
- Sell to open the BAC Apr Week Two (4/8) 41 Call for around $2.69
- Set your initial credit limit at $0.37, but adjust as needed to roll today
New Cost Basis: $45.48
Expiration: After the close on Friday, April 8
Potential Rate of Return: I am targeting breakeven for this position
C Mar Week Four (3/25) 55 Call
Current Stock Price: $56.58
Cost Basis: $66.69
Action:
- Buy to close the C Mar Week Four (3/25) 55 Call for around $1.70
- Sell to open the C Apr Week Two (4/8) 55 Call for around $2.35
- Set your initial credit limit at $0.65, but adjust as needed to roll today
New Cost Basis: $66.04
Expiration: After the close on Friday, April 8
Potential Rate of Return: I am targeting breakeven for this position