I am recommending we roll our Chewy (CHWY) and Twitter (TWTR) calls down to take advantage of market volatility and bring in additional income. Note that we are keeping the expiration dates the same.
If you are not currently in a CHWY and/or TWTR position, you can enter one today. Just be aware that you must first buy 100 shares of the underlying stock for every call you plan to sell to make sure your position is covered. Never sell an uncovered call.
Note that no action is needed on our Apple (AAPL) May Week Two (5/14) 128 Call or General Motors (GM) May Week Two (5/14) 58 Put at this time.
CHWY May Week Two (5/14) 80 Call
Current Stock Price: $68.85
Action:
- Buy to close the CHWY May Week Two (5/14) 80 Call for around $0.14
- Sell to open the CHWY May Week Two (5/14) 72.50 Call for around $0.48
- Set your initial credit limit at $0.34, but adjust as needed to roll today
TWTR May Week Two (5/14) 60 Call
Current Stock Price: $51.34
Action:
- Buy to close the TWTR May Week Two (5/14) 60 Call for around $0.03
- Sell to open the TWTR May Week Two (5/14) 53 Call for around $0.35
- Set your initial credit limit at $0.32, but adjust as needed to roll today
Disclosure: I have positions or trade in and out of AAPL, CHWY, GM and TWTR.