Best Buy (BBY) has been hammered this year along with other discretionary retailers, hit by fears of recession and supply chain issues. But the company has an extensive track record of riding out softness in the economy.
First Solar (FSLR) is one of my two favorite solar stocks. Sunrun (RUN) is the other. Real-world fundamentals, including climate change, elevated oil prices and pent-up consumer demand, point to the long-term success of this sector and FSLR.
I am recommending calls to sell on BBY and FSLR to reduce our cost basis on the positions. However, I may decide to use a LEAP call recovery strategy with these names in the future. And our protective puts remain in place.
Note that these trades are only for members who already own shares uncovered from previous positions.
BBY Uncovered Shares
Note: No action is needed on the BBY Jun Week Four (6/24) 64 Put at this time.
Current Stock Price: $70.34
Cost Basis: $95.96
Action: Sell to open the BBY Jul Week One (7/1) 72.50 Call for around $1.07, but adjust as needed to sell a call today
New Cost Basis: $94.89
FSLR Uncovered Shares
Note: No action is needed on the FSLR Jun Week Four (6/24) 60 Put at this time.
Current Stock Price: $67.96
Cost Basis: $85.02
Action: Sell to open the FSLR Jul Week One (7/1) 70 Call for around $1.35, but adjust as needed to sell a call today
New Cost Basis: $83.67