I am recommending we roll our Bank of America (BAC), Citigroup (C) and Pfizer (PFE) calls out two weeks to generate more income and reduce our cost basis on the positions.
With PFE, we are moving to a higher strike price to capture more potential appreciation.
BAC Mar Week Two (3/11) 41 Call
Current Stock Price: $40.61
Cost Basis: $46.75
Action:
- Buy to close the BAC Mar Week Two (3/11) 41 Call for around $0.34
- Sell to open the BAC Mar Week Four (3/25) 41 Call for around $1.24
- Set your initial credit limit at $0.90, but adjust as needed to roll today
New Cost Basis: $45.85
Expiration: After the close on Friday, March 25
Potential Rate of Return: I am targeting breakeven for this position
C Mar Week Two (3/11) 57 Call
Current Stock Price: $54.45
Cost Basis: $68.33
Action:
- Buy to close the C Mar Week Two (3/11) 57 Call for around $0.08
- Sell to open the C Mar Week Four (3/25) 55 Call for around $1.72
- Set your initial credit limit at $1.64, but adjust as needed to roll today
New Cost Basis: $66.69
Expiration: After the close on Friday, March 25
Potential Rate of Return: I am targeting breakeven for this position
PFE Mar Week Two (3/11) 48 Call
Current Stock Price: $48.63
Cost Basis: $55.69
Action:
- Buy to close the PFE Mar Week Two (3/11) 48 Call for around $0.86
- Sell to open the PFE Mar Week Four (3/25) 49 Call for around $1.16
- Set your initial credit limit at $0.30, but adjust as needed to roll today
New Cost Basis: $55.39
Expiration: After the close on Friday, March 25
Potential Rate of Return: I am targeting breakeven for this position