I am recommending we sell calls against our uncovered shares of Pfizer (PFE), Sunrun (RUN) and Squarespace (SQSP) to reduce our cost basis on the positions.
For a deeper dive on RUN and SQSP, watch the latest Options Income Blueprint Weekly Income Report.
PFE Uncovered Shares
Current Stock Price: $47.32
Cost Basis: $56.93
Action: Sell to open the PFE Mar Week One (3/4) 49 Call
Current Option Price: $0.35-$0.37
Recommended Limit: Set your initial limit order at $0.36, but adjust as needed to sell a call today
New Cost Basis: $56.57
Potential Rate of Return: I am targeting breakeven for this position
RUN Uncovered Shares
Current Stock Price: $20.48
Cost Basis: $41.93
Action: Sell to open the RUN Mar Monthly (3/18) 22.50 Call
Current Option Price: $1.01-$1.12
Recommended Limit: Set your initial limit order at $1.06, but adjust as needed to sell a call today
New Cost Basis: $40.87
Potential Rate of Return: I am targeting breakeven for this position
SQSP Uncovered Shares
Current Stock Price: $27.69
Cost Basis: $40.90
Action: Sell to open the SQSP Mar Monthly (3/18) 30 Call
Current Option Price: $1.40-$1.90
Recommended Limit: Set your initial limit order at $1.65, but adjust as needed to sell a call today
New Cost Basis: $39.25
Potential Rate of Return: I am targeting breakeven for this position