Our Best Buy (BBY) Sep Week Five (9/30) 75 Put is deep in the money and we are on track to be assigned shares. Factoring in our large net debit, our cost basis will be significantly above the current share price. Therefore, I plan to recommend selling our shares soon and using that capital to initiate a LEAP call recovery trade.
We will be purchasing long-dated call options and selling short-term calls against them to bring in income, taking advantage of the leverage the LEAPS provide to potentially get back to breakeven faster than we could by selling puts or owning shares and selling calls.
If you are not familiar with this strategy, please review this coaching session.
Current Stock Price: $64.28
Net Debit: $16.94
Action: Accept shares
Cost Basis: $91.94