Our SPDR S&P Regional Banking ETF (KRE) trade has not worked out well, to say the least. After we accepted shares in mid-June, the fund continued to sell off.
Our KRE Jul Week Four (7/23) 64.50 Call is on track to expire worthless, and we will simply watch it do so.
I plan to initiate a recovery position using a LEAP call strategy. This will involve selling our shares and using the proceeds to purchase long-dated call options. After purchasing the LEAPS, we will sell 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 owning shares and selling calls.
I will be filming a Coaching Session on this recovery tactic and sending it to you, so keep an eye on your email
Current Stock Price: $61.64
Cost Basis: $68.39
Action: Watch call expire worthless