Our Advanced Micro Devices (AMD) and Pfizer (PFE) puts are deep underwater.
I am recommending we accept shares, as the math of selling calls simply makes more sense in the current market environment than continuing to roll the puts. Not only will we be able to collect cash, but we can capture potential appreciation when the market recovers.
Our Taiwan Semiconductor Manufacturing (TSM) and Walgreens Boots Alliance (WBA) calls are on track to expire worthless.
I will be recommending calls to sell against all four names soon. The goal will be to generate a 0.5% weekly cash return on these positions. However, I may accept a lower cash rate of return if I believe there is significant potential for short-term appreciation. And we’re keeping our protective puts in place on AMD, TSM and WBA.
I will be discussing this strategy in greater detail during Tuesday’s Income Masters Live Trading Session.
AMD Jun Monthly (6/17) 100 Put
Note: No action is needed on the AMD Jun Week Four (6/24) 75 Put at this time.
Current Stock Price: $82.56
Net Debit: $18.07
Action: Accept shares
Cost Basis: $118.07
PFE Jun Monthly (6/17) 53 Put
Current Stock Price: $46.77
Net Debit: $1.62
Action: Accept shares
New Cost Basis: $54.62
TSM Jun Monthly (6/17) 93 Call
Note: No action is needed on the TSM Jun Week Four (6/24) 80 Put at this time.
Current Stock Price: $85.43
Cost Basis: $123.72
Action: Watch call expire worthless
WBA Jun Monthly (6/17) 43 Call
Note: No action is needed on the WBA Jun Week Four (6/24) 38 Put at this time.
Current Stock Price: $39.86
Cost Basis: $47.18
Action: Watch call expire worthless