I am recommending we roll our General Motors (GM) and Pfizer (PFE) calls out one week to generate more income and reduce our cost basis on the positions.
GM Mar Week One (3/4) 50 Call
Current Stock Price: $45.03
Cost Basis: $54.17
Action:
- Buy to close the GM Mar Week One (3/4) 50 Call for around $0.02
- Sell to open the GM Mar Week Two (3/11) 47 Call for around $0.57
- Set your initial credit limit at $0.55, but adjust as needed to roll today
New Cost Basis: $53.62
Expiration: After the close on Friday, March 11
Potential Rate of Return: I am targeting breakeven for this position
PFE Mar Week One (3/4) 49 Call
Current Stock Price: $47.98
Cost Basis: $56.57
Action:
- Buy to close the PFE Mar Week One (3/4) 49 Call for around $0.13
- Sell to open the PFE Mar Week Two (3/11) 48 Call for around $1.01
- Set your initial credit limit at $0.88, but adjust as needed to roll today
New Cost Basis: $55.69
Expiration: After the close on Friday, March 11
Potential Rate of Return: I am targeting breakeven for this position