The protective puts we purchased to hedge our Taiwan Semiconductor Manufacturing (TSM) LEAP call recovery position and Walgreens Boots Alliance (WBA) buy-write are on track to expire worthless. We will simply watch them do so.
TSM reported better-than-expected revenue and earnings this week and raised its guidance for the current quarter. This bodes well for the stock and our recovery position despite the hammering the chip sector has taken recently.
TSM Oct Week Two (10/14) 59 Puts
Note: No action is needed on the TSM Jan 2023 (1/20/23) 70/Oct Week Four (10/28) 70 Call Spread at this time.
Current Stock Price: $65.14
Cost Basis: $98.79
Action: Watch the TSM Oct Week Two (10/14) 59 Puts expire worthless
WBA Oct Week Two (10/14) 29 Put
Note: No action is needed on the WBA Oct Week Four (10/28) 34 Call at this time.
Current Stock Price: $33.71
Cost Basis: $43.07 (The cost basis was incorrectly listed as $32.32 in the previous alert.)
Action: Watch the WBA Oct Week Two (10/14) 29 Put expire worthless