Let’s get a jump on managing some of our expiring positions.
Chewy (CHWY) is bucking the market trend today, with shares up around 1.4%. I am recommending we roll our call out one week and up one strike to capture more potential appreciation.
Halliburton (HAL) has been hit hard by coronavirus-related selling. Rather than roll our put again, I am recommending you allow yourself to be assigned shares. We will sell a call on the position soon to bring in income and lower our cost basis.
Finally, we are rolling our Nike (NKE) call up to attempt to capture more appreciation following the runup in shares.
Note that I will send an alert regarding our expiring CVS Health (CVS) position tomorrow. I want to see how the stock trades heading into expiration before deciding how to best manage the position.
CHWY Feb Week Two (2/14) 28 Call
Current Stock Price: $28.51
Cost Basis: $27.96
- Buy to close the CHWY Feb Week Two (2/14) 28 Call for around $0.68
- Sell to open the CHWY Feb Monthly (2/21) 28.50 Call for around $0.77
- Set initial credit limit at $0.09, but adjust as needed to roll today
New Cost Basis: $27.87
HAL Feb Week Two (2/14) 24 Put
Current Stock Price: $22.10
Cash in Hand: $0.41
Action: Accept shares
Cost Basis: $23.59
NKE Feb Week Two (2/14) 101 Call
Current Stock Price: $103.25
Cost Basis: $100.34
- Buy to close the NKE Feb Week Two (2/14) 101 Call for around $2.32
- Sell to open the NKE Feb Week Four (2/28) 102 Call for around $2.51
- Set initial credit limit at $0.19, but adjust as needed to roll today
New Cost Basis: $100.15