We have positions in Micron Technology (MU), Taiwan Semiconductor Manufacturing (TSM) and Twitter (TWTR) expiring today.
I am recommending we close the MU buy-write to lock in profits. And our TWTR put is on track to expire worthless, allowing us to book the maximum profit.
TSM has been hit hard in the past two weeks. I am recommending we roll our spread down and out to the March monthly expiration. This involves closing the current position and opening a new spread. I am reducing the distance between the two strike prices, which will free up the capital required to support this position. But be aware that it will likely require several rolls for us to break even.
MU Feb Week Four (2/26) 88 Call
Current Stock Price: $91.05
Cost Basis: $85.20
- Buy to close the MU Feb Week Four (2/26) 88 Call for around $3.20
- Sell shares at market
Profit: $2.65, or $265 per 100 shares
TSM Feb Week Four (2/26) 130 /120 Put Spread
Current Stock Price: $124.77
Cash in Hand: $0.35
- Buy to close the TSM Feb Week Four (2/26) 130 Put for around $5.15
- Sell to close the TSM Feb Week Four (2/26) 120 Put for around $0.05
- Set initial debit limit at $5.10, but adjust as needed
- Sell to open the TSM Mar Monthly (3/19) 115 Put for around $1.65
- Buy to open the TSM Mar Monthly (3/19) 110 Put for around $0.95
- Set initial credit limit at $0.70
New Net Debit: $4.05
TWTR Feb Week Four (2/26) 65 Put
Current Stock Price: $76.52
Cash in Hand: $0.63
Action: Watch put expire worthless
Profit: $0.63, or $63 per contract