Kroger (KR) has sold off sharply since hitting an all-time high in early March after the company posted better-than-expected fourth-quarter results and offered solid guidance despite supply chain issues and rising prices.
Rampant inflation and economic uncertainty are weighing on retailers. Just look at the latest earnings reports from Target (TGT) and Walmart (WMT), which hit the entire sector this week.
Kroger is not expected to report earnings again for another month. But it has beaten estimates in each of the past four quarters.
Our call is on track to expire worthless. We will simply watch it do so and sell another call soon to reduce our cost basis while we wait for shares to rebound.
Current Stock Price: $48.28
Cost Basis: $58.27
Action: Watch call expire worthless