Hello Investors,
Disney (DIS) made an explosive move higher last week. We did well to “roll-up” our short calls last week from the 150 to the 155 strike price. That improved our trade to the tune of around +$300 overall. We are rolling from December 18th to January 15th expiration today. We are staying at the 155.00 strike price. This order filled and payed us a credit of +1.60 to make the roll-out.
Finally, we own 103 shares. We bought another 30 shares for $170.76 per share today. There is a strong chance that the stock will be “called away” at Jan 15th expiration. If that were to happen, we would still end up long 33 shares (after todays addition). If the stock were to pullback in price toward the 155 strike price, then we would be long 133 shares of stock and the covered call would expire (less likely outcome).
Buy to close: DIS Dec 18th 155.00 strike calls
Sell to open: DIS Jan 15th 155.00 strike calls
Credit: 1.60
Bought 30 shares at 170.76 per share.