We accepted shares of Walt Disney (DIS) last week. I am recommending a call to sell to reduce our cost basis on the position.
While our cost basis remains well above the current share price, I explained in the previous alert that Disney is a fundamentally solid company that investors should not worry about owning for the long haul. We will continue selling calls for income as we wait for shares to recover.
Current Stock Price: $111.27
Cost Basis: $134.27
Action: Sell to open the DIS Sep Monthly (9/16) 114 Call for around $1.29, but adjust as needed to sell a call today
New Cost Basis: $132.98