I am recommending we roll our CVS Health (CVS), Intel (INTC) and Micron Technology (MU) positions.
If CVS remains below $60 for the next week or two, we will likely accept shares and sell calls.
CVS Sep Week Two (9/11) 64 Put
Current Stock Price: $59.31
Cash in Hand: $1.02
Action:
- Buy to close the CVS Sep Week Two (9/11) 64 Put for around $4.70
- Sell to open the CVS Sep Monthly (9/18) 64 Put for around $4.75
- Set your initial credit limit at $0.05 but adjust as needed to roll today
New Cash in Hand: $1.07
Expiration: After the close on Friday, Sept. 18
Potential Rate of Return: 1.7% in 32 days, or 19% annualized, if this option expires worthless
INTC Sep Week Two (9/11) 49 Call
Current Stock Price: $49.77
Cost Basis: $58.61
Action:
- Buy to close the INTC Sep Week Two (9/11) 49 Call for around $0.88
- Sell to open the INTC Sep Week Four (9/25) 50 Call for around $1.09
- Set your initial credit limit at $0.21, but adjust as needed to roll today
Cost Basis: $58.40
Expiration: After the close on Friday, Sept. 25
Potential Rate of Return: I am targeting breakeven for this position
MU Sep Week Two (9/11) 47 Call
Current Stock Price: $45.74
Cost Basis: $52.67
Action:
- Buy to close the MU Sep Week Two (9/11) 47 Call for around $0.09
- Sell to open the MU Sep Week Four (9/25) 47 Call for around $1
- Set your initial credit limit at $0.91, but adjust as needed to roll today
Cost Basis: $51.76
Expiration: After the close on Friday, Sept. 25
Potential Rate of Return: I am targeting breakeven for this position