Our expiring CVS Health (CVS) put is deep in the money, so I am recommending we accept shares and will sell a call next week.
I am also recommending we roll our Intel (INTC) call to generate more income and our Micron Technology (MU) call to capture more potential appreciation.
CVS Sep Monthly (9/18) 64 Put
Current Stock Price: $58.97
Cash in Hand: $1.07
Action: Accept shares
Cost Basis: $62.93
INTC Sep Week Four (9/25) 50 Call
Current Stock Price: $50.11
Cost Basis: $58.40
Action:
- Buy to close the INTC Sep Week Four (9/25) 50 Call for around $0.75
- Sell to open the INTC Oct Week One (10/2) 50 Call for around $1.07
- Set your initial credit limit at $0.32, but adjust as needed to roll today
New Cost Basis: $58.08
Expiration: After the close on Friday, Oct. 2
Potential Rate of Return: I am targeting breakeven for this position
MU Sep Week Four (9/25) 47 Call
Current Stock Price: $51.59
Cost Basis: $51.76
Action:
- Buy to close the MU Sep Week Four (9/25) 47 Call for around $4.60
- Sell to open the MU Oct Week One (10/2) 48 Call for around $4.77
- Set your initial credit limit at $0.17, but adjust as needed to roll today
New Cost Basis: $51.59
Expiration: After the close on Friday, Oct. 2
Potential Rate of Return: I am targeting breakeven for this position