Citigroup (C) sold off after the Federal Reserve announcement last week, prompting us to accept shares. Today, I am recommending we sell a call to reduce our cost basis on this core stock.
Note that this trade is only for people who already own shares of C uncovered from a previous position.
Current Stock Price: $68.10
Cost Basis: $70.07
Action: Sell to open the C Nov Monthly (11/19) 69 Call
Current Option Price: $0.76-$0.78
Recommended Limit: Set your initial limit order at $0.77, but adjust as needed to sell a call today
Expiration: After the close on Friday, Nov. 19
New Cost Basis: $69.30
Potential Rate of Return: I am targeting breakeven for this position