I am recommending we roll our Bank of America (BAC), General Motors (GM) and Marvell Technology (MRVL) calls out one week and to lower strikes to generate more income and reduce our cost basis on the positions.
Note that these trades are only for members who already own shares of BAC, GM and MRVL uncovered from previous positions.
BAC Jul Week Two (7/8) 33 Call
Current Stock Price: $30.71
Cost Basis: $42
Action:
- Buy to close the BAC Jul Week Two (7/8) 33 Call for around $0.02
- Sell to open the BAC Jul Monthly (7/15) 31 Call for around $0.65
- Set your initial credit limit at $0.63, but adjust as needed to roll today
New Cost Basis: $41.37
Expiration: After the close on Friday, July 15
Potential Rate of Return: I am targeting breakeven for this position
GM Jul Week Two (7/8) 33 Call
Current Stock Price: $31.01
Cost Basis: $45.92
Action:
- Buy to close the GM Jul Week Two (7/8) 33 Call for around $0.08
- Sell to open the GM Jul Monthly (7/15) 32 Call for around $0.67
- Set your initial credit limit at $0.59, but adjust as needed to roll today
New Cost Basis: $45.33
Expiration: After the close on Friday, July 15
Potential Rate of Return: I am targeting breakeven for this position
MRVL Jul Week Two (7/8) 47 Call
Current Stock Price: $43.47
Cost Basis: $67.49
Action:
- Buy to close the MRVL Jul Week Two (7/8) 47 Call for around $0.06
- Sell to open the MRVL Jul Monthly (7/15) 45 Call for around $0.97
- Set your initial credit limit at $0.91, but adjust as needed to roll today
New Cost Basis: $66.58
Expiration: After the close on Friday, July 15
Potential Rate of Return: I am targeting breakeven for this position