We were assigned shares of CVS Health (CVS) and Walt Disney (DIS) last week. I am recommending calls to sell against our shares to generate income and reduce our cost basis on the positions.
CVS Uncovered Shares
Current Stock Price: $82.33
Cost Basis: $88.63
Action: Sell to open the CVS Mar Monthly (3/17) 83 Call for around $0.86, but adjust as needed to sell a call today
New Cost Basis: $87.77
DIS Uncovered Shares
Current Stock Price: $101.91
Cost Basis: $108.68
Action: Sell to open the DIS Mar Monthly (3/17) 105 Call for around $0.85, but adjust as needed to sell a call today
New Cost Basis: $107.83