We accepted shares of Nike (NKE) over the weekend. The company is scheduled to report earnings after the close today.
I am recommending we sell a call and use some of that cash to buy a protective put to hedge our position.
Current Stock Price: $110.75
Cost Basis: $131.25
Action:
- Sell to open the NKE Jul Week Two (7/8) 115 Call for around $2.90
- Buy to open the NKE Jul Week One (7/1) 105 Put for around $2
New Cost Basis: $130.35