General Motors (GM) is scheduled to announce earnings on Oct. 25. I believe decent sales and inventory data have already been priced in. Therefore, I do not want to hold a position through earnings.
Our GM Oct Monthly (10/21) 34 Call is trading right around the strike price of our call. If the stock closes above $34, our shares will be called away. If not, the call will expire worthless, and we will sell our shares on Monday. In either case, we will re-enter this core stock by selling a put after the earnings dust settles.
Current Stock Price: $33.88
Cost Basis: $46.96
Action: Watch call expire
Potential Rate of Return: I am targeting breakeven for this position