I am recommending we roll our General Motors (GM) and Marvell Technology (MRVL) calls out one week to generate more income and reduce our cost basis on the positions. With MRVL, we are also rolling to a higher strike to capture another $1 in potential appreciation.
Note that these trades are only for members already in the positions.
GM Jul Monthly (7/15) 32 Call
Current Stock Price: $31
Cost Basis: $45.33
Action:
- Buy to close the GM Jul Monthly (7/15) 32 Call for around $0.20
- Sell to open the GM Jul Week Four (7/22) 32 Call for around $0.59
- Set your initial credit limit at $0.39, but adjust as needed to roll today
New Cost Basis: $44.94
Expiration: After the close on Friday, July 22
Potential Rate of Return: I am targeting breakeven for this position
MRVL Jul Monthly (7/15) 45 Call
Current Stock Price: $45.94
Cost Basis: $59.26
Action:
- Buy to close the MRVL Jul Monthly (7/15) 45 Call for around $1.51
- Sell to open the MRVL Jul Week Four (7/22) 46 Call for around $1.66
- Set your initial credit limit at $0.15, but adjust as needed to roll today
New Cost Basis: $59.11
Expiration: After the close on Friday, July 22
Potential Rate of Return: I am targeting breakeven for this position