We have uncovered shares of Bank of America (BAC), Citigroup (C), Pfizer (PFE) and Lyft (LYFT) that we need to sell to temporarily exit the positions.
We are selling BAC and C to avoid risk related to this week’s Federal Reserve meeting. And we are selling PFE and LYFT to avoid the companies’ respective earnings announcements.
We will incur net debits on all these positions, in some cases large ones. However, I am still bullish on all of these companies and their potential for option sellers. We will resume selling puts for income once we see how they respond to these events.
BAC Uncovered Shares
Current Stock Price: $35.72
Cost Basis: $44.92
Action: Sell shares at market
Net Debit: $9.20
Potential Rate of Return: I am targeting breakeven for this position
C Uncovered Shares
Current Stock Price: $48.34
Cost Basis: $66.65
Action: Sell shares at market
Net Debit: $18.31
Potential Rate of Return: I am targeting breakeven for this position
LYFT Uncovered Shares
Current Stock Price: $32.39
Cost Basis: $35.15
Action: Sell shares at market
Net Debit: $2.76
Potential Rate of Return: I am targeting breakeven for this position
PFE Uncovered Shares
Current Stock Price: $48.07
Cost Basis: $58.47
Action: Sell shares at market
Net Debit: $10.40
Potential Rate of Return: I am targeting breakeven for this position