We were assigned shares of General Motors (GM) last week.
The company is scheduled to report earnings next week, and I have decided we should hold a position through the announcement. Therefore, I am recommending a call to sell against our uncovered shares to generate income and reduce our cost basis.
Note that this trade is only for people who already own shares of GM uncovered from a previous position.
Current Stock Price: $54.93
Cost Basis: $57.98
Action: Sell to open the GM Aug Week One (8/6) 58 Call
Current Option Price: $0.54-$0.56
Recommended Limit: Set your initial limit order at $0.55, but adjust as needed to sell a call today
New Cost Basis: $57.43
Expiration: After the close on Friday, Aug. 6
Potential Rate of Return: 1% in 39 days, or 9% annualized, if shares are called away