I am recommending we roll our General Motors (GM) and Marvell Technology (MRVL) calls out two weeks and to lower strikes to generate more income and reduce our cost basis on the positions.
GM Jun Week Four (6/24) 34 Call
Current Stock Price: $33.02
Cost Basis: $47.12
Action:
- Buy to close the GM Jun Week Four (6/24) 34 Call for around $0.11
- Sell to open the GM Jul Week Two (7/8) 33 Call for around $1.31
- Set your initial credit limit at $1.20, but adjust as needed to roll today
New Cost Basis: $45.92
Expiration: After the close on Friday, July 8
Potential Rate of Return: I am targeting breakeven for this position
MRVL Jun Week Four (6/24) 48 Call
Current Stock Price: $46.44
Cost Basis: $69.26
Action:
- Buy to close the MRVL Jun Week Four (6/24) 48 Call for around $0.24
- Sell to open the MRVL Jul Week Two (7/8) 47 Call for around $2.01
- Set your initial credit limit at $1.77, but adjust as needed to roll today
New Cost Basis: $67.49
Expiration: After the close on Friday, July 8
Potential Rate of Return: I am targeting breakeven for this position