I am recommending we allow our Citigroup (C) and General Motors (GM) calls to expire worthless.
Both stocks have been hit by concerns about slowing economic growth and perhaps jitters about the companies delivering revenue guidance that is below estimates when they report later this month.
I plan to recommend selling our Citigroup shares next week, before the bank reports earnings on April 14, and re-entering the position after the announcement.
I will recommend a call to sell on GM soon, as we have a few more weeks until the automaker announces on April 26.
C Apr Week Two (4/8) 55 Call
Current Stock Price: $50.94
Cost Basis: $66.04
Action: Watch call expire worthless
Potential Rate of Return: I am targeting breakeven for this position
GM Apr Week Two (4/8) 45 Call
Current Stock Price: $39.59
Cost Basis: $51.77
Action: Watch call expire worthless
Potential Rate of Return: I am targeting breakeven for this position