I am recommending we roll our Marvell Technology (MRVL) call out three weeks and to a higher strike price to avoid having our shares called away.
While we will need to spend a bit of cash to roll, we are picking up another $1 in potential capital appreciation.
Current Stock Price: $43.52
Cost Basis: $55.80
- Buy to close the MRVL Jan Week Four (1/27) 38 Call for around $5.55
- Sell to open the MRVL Feb Monthly (2/17) 39 Call for around $5.15
- Set your initial debit limit at $0.40 but adjust as needed to roll today
New Cost Basis: $56.20
Expiration: After the close on Friday, Feb. 17
Potential Rate of Return: I am targeting breakeven for the position