Sunrun (RUN) is up around 9% in the past two trading days. Over the weekend, the Senate approved a $740 billion climate, health care and tax package that includes $374 billion in climate and energy spending. The House is expected to approve the legislation this month, potentially giving solar stocks another boost
Therefore, I am recommending we roll our RUN call out one month and to a higher strike. While we will spend a good deal of cash to do so, we will be capturing an additional $5 per share in potential appreciation.
Current Stock Price: $34.88
Cost Basis: $42.39
- Buy to close the RUN Aug Monthly (8/19) 30 Call for around $5.45
- Sell to open the RUN Sep Monthly (9/16) 35 Call for around $3.75
- Set your initial debit limit at $1.70, but adjust as needed to roll today
New Cost Basis: $44.09