We have calls on Marvell Technology (MRVL) and Charles Schwab (SCHW) expiring today.
If MRVL closes above $55, our shares will be called away. If, however, it closes below that level, our call will expire worthless.
The semiconductor maker is expected to announce earnings next week. So, if our call expires worthless, we will sell our shares ahead of the announcement to avoid earnings risk, carrying over a net debit.
Either way, we will be re-entering the position with a put to reduce our net debit once the earnings dust settles.
Charles Schwab (SCHW) has sold off sharply with the broader market and the financial sector over the past month. Our call is on track to expire worthless. I will recommend a new call soon to reduce our cost basis on the position while we wait for shares to rebound.
MRVL May Monthly (5/20) 55 Call
Current Stock Price: $53.65
Cost Basis: $66.19
Action: Watch call expire
Potential Rate of Return: I am targeting breakeven for this position
SCHW May Monthly (5/20) 70 Call
Current Stock Price: $46.24
Cost Basis: $72.28
Action: Watch call expire worthless
Potential Rate of Return: I am targeting breakeven for this position