We have three positions expiring today.
General Motors (GM) bounced back with the broader market this week. I am recommending we roll our call out two weeks to generate more cash and reduce our cost basis on the position.
Sunrun’s (RUN) rebound over the past month has shares trading well above the strike price of our call. Let’s allow our shares to be called away and I will recommend a put to sell soon to reduce our net debit on the position.
Finally, our Squarespace (SQSP) call is on track to expire worthless. The stock is selling off sharply today, and I plan to wait for a bounce in shares before selling another call. I will discuss the company and its recent earnings report in Monday’s Weekly Income Report.
GM Mar Monthly (3/18) 45 Call
Current Stock Price: $43.78
Cost Basis: $53.16
Action:
- Buy to close the GM Mar Monthly (3/18) 45 Call for around $0.04
- Sell to open the GM Apr Week One (4/1) 45 Call for around $0.93
- Set your initial credit limit at $0.89, but adjust as needed to roll today
New Cost Basis: $52.27
Expiration: After the close on Friday, April 1
Potential Rate of Return: I am targeting breakeven for this position
RUN Mar Monthly (3/18) 22.50 Call
Current Stock Price: $31.05
Cost Basis: $40.87
Action: Allow shares to be called away
Net Debit: $18.37
Potential Rate of Return: I am targeting breakeven for this position
SQSP Mar Monthly (3/18) 30 Call
Current Stock Price: $26.33
Cost Basis: $39.25
Action: Watch call expire worthless
Potential Rate of Return: I am targeting breakeven for this position