I am recommending we roll our Marvell Technology Group (MRVL) and Twitter (TWTR) call positions.
MRVL Mar Week Two (3/12) 50 Call
Current Stock Price: $45.04
Cost Basis: $49.72
Action:
- Buy to close the MRVL Mar Week Two (3/12) 50 Call for around $0.05
- Sell to open the MRVL Mar Monthly (3/19) 50 Call for around $0.31
- Set your initial credit limit at $0.26, but adjust as needed to roll today
New Cost Basis: $49.46
Expiration: After the close on Friday, March 19
Potential Rate of Return: 1% in 32 days, or 12% annualized, if shares are called away
TWTR Mar Week Two (3/12) 71 Call
Current Stock Price: $67.07
Cost Basis: $69.57
Action:
- Buy to close the TWTR Mar Week Two (3/12) 71 Call for around $0.14
- Sell to open the TWTR Mar Monthly (3/19) 71 Call for around $0.84
- Set your initial credit limit at $0.70, but adjust as needed to roll today
New Cost Basis: $68.87
Expiration: After the close on Friday, March 19
Potential Rate of Return: 2.9% in 32 days, or 33% annualized, if shares are called away