I am recommending we roll our Marvell Technology Group (MRVL) and Micron Technology (MU) calls down to reduce our cost basis on the positions. Note that we are keeping the expiration dates the same.
MRVL May Week Two (5/14) 47 Call
Current Stock Price: $43.05
Cost Basis: $51.20
Action:
- Buy to close the MRVL May Week Two (5/14) 47 Call for around $0.08
- Sell to open the MRVL May Week Two (5/14) 44 Call for around $0.46
- Set your initial credit limit at $0.38, but adjust as needed to roll today
New Cost Basis: $50.82
Expiration: After the close on Friday, May 14
Potential Rate of Return: I am targeting breakeven for this position
MU May Week Two (5/14) 87.50 Call
Current Stock Price: $78.48
Cost Basis: $88.75
Action:
- Buy to close the MU May Week Two (5/14) 87.50 Call for around $0.06
- Sell to open the MU May Week Two (5/14) 80 Call for around $0.93
- Set your initial credit limit at $0.87, but adjust as needed to roll today
New Cost Basis: $87.88
Expiration: After the close on Friday, May 14
Potential Rate of Return: I am targeting breakeven for this position