Our First Solar (FSLR) and General Motors (GM) puts are deep in the money. The premiums for rolling are not attractive. Therefore, I am recommending we accept shares and will sell calls against them.
FSLR is expected to report earnings on July 29. We may exit the position prior to that and re-enter following the announcement, carrying over any net debits incurred. In other words, I am not giving up on FSLR and plan to manage our way back to breakeven or even profitability.
GM is expected to announce earnings on Aug. 4. My inclination is to hold the shares into that announcement.
Finally, Walgreens Boots Alliance (WBA) is not trading well despite news this week about rising COVID-19 infections, as well as rising vaccination rates in some states. I am recommending we buy our put back at a small loss.
FSLR Jul Week Four (7/23) 91 Put
Current Stock Price: $82.59
Cash in Hand: $0.80
Action: Accept shares
Cost Basis: $90.20
GM Jul Week Four (7/23) 60 Put
Current Stock Price: $55.10
Cash in Hand: $2.02
Action: Accept shares
Cost Basis: $57.98
WBA Jul Week Four (7/23) 48 Put
Current Stock Price: $46.37
Cash in Hand: $1.52
Action: Buy to close the WBA Jul Week Four (7/23) 48 Put
Current Option Price: $1.55-$1.63
Recommended Limit: Set your initial limit order at $1.59, but adjust as needed to close today
Loss: $0.07, or $7 per contract