I am recommending we roll our General Motors (GM) call. The stock has been hit hard by general market weakness and concerns about nickel supply disruption impacting electric vehicle production.
Let’s capture some of today’s bullish movement by rolling our call out one week and to a lower strike price.
Current Stock Price: $42.34
Cost Basis: $53.62
Action:
- Buy to close the GM Mar Week Two (3/11) 47 Call for around $0.03
- Sell to open the GM Mar Monthly (3/18) 45 Call for around $0.49
- Set your initial credit limit at $0.46, but adjust as needed to roll today
New Cost Basis: $53.16
Expiration: After the close on Friday, March 18
Potential Rate of Return: I am targeting breakeven for this position