Sunrun (RUN) has been a big disappointment. After a huge run-up during the spring and summer, shares have reversed sharply, losing roughly half of their value since mid-September.
The selling has been driven in part by concerns that higher interest rates will suppress demand. I believe these fears are overblown, but we will see when the company announces earnings in early November.
Since RUN only has monthly options, we will hold off a bit on selling another call. The hope is to capture capital appreciation if the stock rallies heading into and/or following its earnings report given the extreme pessimism already priced into shares.
After earnings come out and we see how the market responds, I will decide whether to exit the position at a loss or continue selling calls.
Current Stock Price: $19.90
Cost Basis: $44.14
Action: Watch RUN Oct Monthly (10/21) 40 Call expire worthless
Potential Rate of Return: I am targeting breakeven for this position