I am recommending calls to sell against our uncovered shares of Bank of America (BAC) and Citigroup (C) to reduce our cost basis on the positions.
Note that these recommendations are only for people who already own shares of these stocks uncovered from previous positions.
BAC Uncovered Shares
Current Stock Price: $39.07
Cost Basis: $47.03
Action: Sell to open the BAC Mar Week Two (3/11) 41 Call
Current Option Price: $0.28-$0.29
Recommended Limit: Set your initial limit order for $0.28, but adjust as needed to sell a call today
New Cost Basis: $46.75
Expiration: After the close on Friday, March 11
Potential Rate of Return: I am targeting breakeven for this position
C Uncovered Shares
Current Stock Price: $55.45
Cost Basis: $69.07
Action: Sell to open the C Mar Week Two (3/11) 57 Call
Current Option Price: $0.73-$0.75
Recommended Limit: Set your initial limit order for $0.74, but adjust as needed to sell a call today
New Cost Basis: $68.33
Expiration: After the close on Friday, March 11
Potential Rate of Return: I am targeting breakeven for this position