Best Buy (BBY) is scheduled to announce earnings tomorrow. Rather than exit our shares, I am recommending we sell a call to generate income and then use that income to buy a protective put to hedge our downside risk.
Note that this trade is only for members who already own shares of BBY from a previous position.
Current Stock Price: $72.50
Cost Basis: $96.44
- Sell to open the BBY Jun Week One (6/3) 80 Call for around $3.06, but adjust as needed to sell a call today
- Buy to open the BBY May Week Four (5/27) 64 Put for around $2.98, but adjust as needed to buy a put today
New Cost Basis: $96.36