Hello Investors,
We are going to “roll up” one of our 2 short calls in DELL. We have a 55.00 and 57.50 strike covered calls against our 200 shares of stock. We are rolling up the 55.00 calls and leaving the 57.50 calls alone.
The details are as follows:
Bought to close: DELL Aug 21st (monthly) 55.00 strike calls
Sold to open: DELL Aug 21st (monthly) 65.00 strike calls
Limit debit: 4.75
Based on the original credit of +1.15 that is a loss of -3.60 in this covered call. However, we fully expect to make it back and then some over time at higher strike prices.
Happy Trading!