I am recommending we roll our Pfizer (PFE) and Sonos (SONO) calls out one week and to higher strikes. This will allow us to capture more potential appreciation.
PFE Oct Week Four (10/22) 42.50 Call
Current Stock Price: $42.54
Cost Basis: $46.70
Action:
- Buy to close the PFE Oct Week Four (10/22) 42.50 Call for around $0.26
- Sell to open the PFE Oct Week Five (10/29) 43 Call for around $0.40
- Set initial credit limit at $0.14, but adjust as needed to roll today
New Cost Basis: $46.56
Expiration: After the close on Friday, Oct. 29
Potential Rate of Return: I am targeting breakeven for this position
SONO Oct Week Four (10/22) 33 Call
Current Stock Price: $32.88
Cost Basis: $36.14
Action:
- Buy to close the SONO Oct Week Four (10/22) 33 Call for around $0.34
- Sell to open the SONO Oct Week Five (10/29) 34 Call for around $0.43
- Set initial credit limit at $0.09, but adjust as needed to roll today
New Cost Basis: $36.05
Expiration: After the close on Friday, Oct. 29
Potential Rate of Return: I am targeting breakeven for this position