I am recommending we sell calls on our uncovered shares of Sunrun (RUN) and Charles Schwab (SCHW).
Charles Schwab reported better-than-expected results today with revenue up 13% year over year and earnings rising 38.5%.
Sunrun is bouncing back today following Friday’s sell-off after Sen. Joe Manchin said he would not support Democrats’ spending bill if it increased funding for climate change provisions.
RUN only has monthly options, which means we will be going out past the company’s expected earnings date.
Note that these traders are only for members who already own shares of RUN and SCHW from previous positions.
RUN Uncovered Shares
Current Stock Price: $25.13
Cost Basis: $43.51
Action: Sell to open the RUN Aug Monthly (8/19) 30 Call
Current Option Price: $1.11-$1.13
Recommended Limit: Set your initial limit order at $1.12, but adjust as needed to sell a call today
New Cost Basis: $42.39
Expiration: After the close on Friday, Aug 19
Potential Rate of Return: I am targeting breakeven for this position
SCHW Uncovered Shares
Current Stock Price: $62.52
Cost Basis: $70.26
Action: Sell to open the SCHW Jul Week Five (7/29) 64 Call
Current Option Price: $0.97-$1.07
Recommended Limit: Set your initial limit order at $1.02, but adjust as needed to sell a call today
New Cost Basis: $69.24
Expiration: After the close on Friday, July 29
Potential Rate of Return: I am targeting breakeven for this position