We were assigned shares of Pfizer (PFE) and Taiwan Semiconductor Manufacturing (TSM) last week, and our Walgreens Boots Alliance (WBA) call expired worthless. This leaves us with uncovered shares in each of these stocks. I am recommending calls to sell to reduce our cost basis on the positions.
Note that with PFE we are selling a close-to-the-money call with the goal of being called out of our shares. The company is scheduled to report earnings on May 3, and I do not want to hold a position through that announcement. We will re-enter the position once the earnings dust settles.
PFE Uncovered Shares
Current Stock Price: $48.99
Cost Basis: $54.23
Action: Sell to open the PFE Apr Week Five (4/29) 49 Call for around $0.67, but adjust as needed to sell a call today
New Cost Basis: $53.56
TSM Uncovered Shares
Current Stock Price: $90.97
Cost Basis: $128.58
Action: Sell to open the TSM Apr Week Five (4/29) 93 Call for around $0.71, but adjust as needed to sell a call today
New Cost Basis: $127.87
WBA Uncovered Shares
Current Stock Price: $44.18
Cost Basis: $49.49
Action: Sell to open the WBA Apr Week Five (4/29) 44.50 Call for around $0.39, but adjust as needed to sell a call today
New Cost Basis: $49.10