I am recommending we sell a near-the-money call on our uncovered Expedia (EXPE) shares. The goal is to generate a large chunk of cash and have our shares called away ahead of the company’s earnings announcement.
While Expedia’s earnings date has yet to be confirmed, the company is expected to announce in early May. Once we hear what management has to say, I will decide whether to continue with the position.
Current Stock Price: $94.70
Cost Basis: $101.82
Action: Sell to open the EXPE Apr Week Four (4/28) 95 Call for around $1.90, but adjust as needed to sell a call today
New Cost Basis: $99.92