Apple (AAPL) is trading well above the strike price of our call. I am recommending we spend some cash to roll out two weeks and to a higher strike to capture another $2 in potential appreciation.
Note that the company is expected to report earnings on April 28, and we will likely be holding this position through the announcement.
I am also recommending we roll our General Motors (GM) call to a lower strike to generate more income while keeping the expiration date the same.
If you are not currently in an AAPL and/or GM position, please sit these out. I will alert you when it’s time to put new money to work.
Note that no action is needed on our Chewy (CHWY) Apr Week Four (4/23) 77 Put or Twitter (TWTR) Apr Week Four (4/23) 66 Put at this time.
AAPL April Week Four (4/26) 126 Call
Current Stock Price: $133.23
- Buy to close the AAPL Apr Week Four (4/23) 126 Call for around $7.25
- Sell to open the AAPL May Week One (5/7) 128 Call for around $7.05
- Set your initial debit limit at $0.20, but adjust as needed to roll today
GM Apr Week Four (4/23) 59 Call
Current Stock Price: $56.32
- Buy to close the GM Apr Week Four (4/23) 59 Call for around $0.06
- Sell to open the GM Apr Week Four (4/23) 57 Call for around $0.39
- Set your initial credit limit at $0.33, but adjust as needed to roll today
Disclosure: I have positions or trade in and out of AAPL, CHWY, GM and TWTR.