I am recommending calls to sell against our uncovered Mosaic Company (MOS), Micron Technology (MU) and SPDR S&P Biotech ETF (XBI) shares.
The income we generate will reduce our cost basis on the positions. And our protective puts remain in place to protect against sharp moves down in the stocks.
Note that these trades are only for members who already own shares uncovered from previous positions.
MOS Uncovered Shares
Note: No action is needed on the MOS Jun Week Four (6/24) 50 Put at this time.
Current Stock Price: $50.47
Cost Basis: $65.51
Action: Sell to open the MOS Jul Week One (7/1) 53 Call for around $0.94, but adjust as needed to sell a call today
New Cost Basis: $64.57
MU Uncovered Shares
Note: No action is needed on the MU Jun Week Four (6/24) 53.50 Put at this time.
Current Stock Price: $56.72
Cost Basis: $69.86/$73.31
Action: Sell to open the MU Jul Week One (7/1) 60 Call for around $1.07, but adjust as needed to sell a call today
New Cost Basis: $68.79/72.24
XBI Uncovered Shares
Note: No action is needed on the XBI Jun Week Four (6/24) 55 Put at this time.
Current Stock Price: $72.54
Cost Basis: $91.91 (Note that the cost basis was incorrectly listed as $92.11 in the previous alert.)
Action: Sell to open the XBI Jun Week Four (6/24) 74 Call for around $0.78, but adjust as needed to sell a call today
New Cost Basis: $91.13