I am recommending we roll our General Motors (GM) call and Pfizer (PFE) put out one week to generate more income.
GM Aug Week Two (8/13) 55 Call
Current Stock Price: $54.51
Cost Basis: $56.64
Action:
- Buy to close the GM Aug Week Two (8/13) 55 Call for around $0.21
- Sell to open the GM Aug Monthly (8/20) 55 Call for around $0.69
- Set your initial credit limit at $0.48, but adjust as needed to roll today
New Cost Basis: $56.16
Expiration: After the close on Friday, Aug. 20
Rate of Return: I am targeting breakeven for this position.
PFE Aug Week Two (8/13) 47 Put
Current Stock Price: $46.80
Cash in Hand: $0.43
Action:
- Buy to close the PFE Aug Week Two (8/13) 47 Put for around $0.54
- Sell to open the PFE Aug Monthly (8/20) 47 Put for around $0.95
- Set your initial credit limit at $0.41, but adjust as needed to roll today
New Cash in Hand: $0.84
Expiration: After the close on Friday, Aug. 20
Rate of Return: 1.8% in 11 days, or 59% annualized, if this option expires worthless