I am recommending a call to sell against our uncovered SPDR S&P Biotech ETF (XBI) shares. The income we generate will reduce our cost basis on the position.
Current Stock Price: $102.52
Cost Basis: $110.28
Action: Sell to open the XBI Jan Week Two (1/14) 105 Call for around $0.70, but adjust as needed to sell a call today
New Cost Basis: $109.58