Our General Motors (GM) call expired worthless last week. The company is scheduled to report earnings after the close today and I do not want to risk holding shares through the announcement. I am recommending you sell your shares now and we will re-enter the position by selling a put once the earnings dust settles.
We also have uncovered shares of Pfizer (PFE) after we were assigned last week. The company is scheduled to report earnings on May 3, and I do not want to hold a position through that announcement either.
Therefore, I am recommending we sell a near-the-money call to reduce our cost basis with the goal of being called out of our shares. We will re-enter the position after the announcement. Note that this trade is only for members who already own PFE shares from a previous position.
GM Uncovered Shares
Current Stock Price: $38.82
Cost Basis: $51.40
Action: Sell shares at market
Net Debit: $12.58
Potential Rate of Return: I am targeting breakeven for this position
PFE Uncovered Shares
Current Stock Price: $49.70
Cost Basis: $59.01
Action: Sell to open the PFE Apr Week Five (4/29) 50 Call for around, but adjust as needed to sell a call today
Current Option Price: $0.53-$0.56
Recommended Limit: Set your initial limit order at $0.54, but adjust as needed to sell a call today
New Coast Basis: $58.47
Expiration: After the close on Friday, April 29
Potential Rate of Return: I am targeting breakeven for this position