Our Nike (NKE) call is in the money and rolling will produce little cash. Therefore, I am recommending we allow our shares to be called away. I will recommend a put soon to reduce our net debit on the position.
The Trade Desk (TTD) shares are also on track to be called away, allowing us to book a small profit on a position that was deep underwater. The stock traded around $70 when we entered the position in April. While shares remain more than 25% below that level today, our aggressive selling of puts and calls has allowed us to preserve our cash and exit the position in the black.
In the event that shares close below our $49 strike, our call will expire worthless. The company is scheduled to announce earnings next week. We will sell our shares before then and sell a put after the announcement to reduce our net debit on the position.
NKE Aug Week One (8/5) 110 Call
Current Stock Price: $113.50
Cost Basis: $126.36
Action: Allow shares to be called away
Net Debit: $16.36
TTD Aug Week One (8/5) 49 Call
Current Stock Price: $51.55
Cost Basis: $48.38
Action: Allow shares to be called away
Profit: $0.62, or $62 per 100 shares (if called out)