Charles Schwab (SCHW) has sold off with the broader market this week. I am recommending we roll our call out two weeks to generate more income and reduce our cost basis on the position.
We are moving our strike up to capture another $1 in potential appreciation.
Note that this trade is only for members who are already in the position.
Current Stock Price: $62.60
Cost Basis: $71.06
Action:
- Buy to close the SCHW Jul Week One (7/1) 64 Call for around $0.23
- Sell to open the SCHW Jul Monthly (7/15) 65 Call for around $1.03
- Set your initial credit limit at $0.80, but adjust as needed to roll today
New Cost Basis: $70.26
Expiration: After the close on Friday, July 15
Potential Rate of Return: I am targeting breakeven for this position