We are currently on track to have our Corning (GLW) shares called away at a loss. I am recommending we do so and move on. The stock has been difficult to trade lately, and the company is scheduled to report earnings this month.
I am also recommending we roll our KB Home (KBH) call to generate more income.
Finally, the SPDR S&P Regional Banking ETF (KRE) has moved up quickly and I do not want to chase it. We managed to turn a large paper loss into a small profit using an active recovery strategy.
GLW Oct Monthly (10/15) 37 Call
Current Stock Price: $38.03
Cost Basis: $37.71
Action: Allow shares to be called away
Loss: $0.71, or $71 per 100 shares
KBH Oct Monthly (10/15) 42 Call
Current Stock Price: $40.58
Cost Basis: $43.58
Action:
- Buy to close the KBH Oct Monthly (10/15) 42 Call for around $0.05
- Sell to open the KBH Nov Monthly (11/19) 42 Call for around $0.75
- Set your initial credit limit at $0.70, but adjust as needed to roll today
New Cost Basis: $42.88
KRE Oct Monthly (10/15) 66 Call
Current Stock Price: $70.58
Cost Basis: $65.48
Action: Allow shares to be called away
Profit: $0.52, or $52 per contract