Let’s roll our General Motors (GM) call out two weeks and up one strike for a credit to capture more potential appreciation and continue to chip away at our cost basis.
Note that this trade is only for members already in the position.
Current Stock Price: $33.15
Cost Basis: $46.30
- Buy to close the GM 2 Jun 33 Call for around $0.38
- Sell to open the GM 16 Jun 33.50 Call for around $0.80
- Set your initial credit limit at $0.42, but adjust as needed to roll today
New Cost Basis: $45.88
Expiration: After the close on Friday, June 16
Potential Rate of Return: We are targeting breakeven for this position