I am recommending we sell calls on our uncovered shares of Sunrun (RUN) and Squarespace (SQSP). I am choosing strikes that are considerably out of the money in case the market continues to reverse higher.
Note that these trades are only for members who already own shares of RUN and/or SQSP uncovered from a previous position.
RUN Uncovered Shares
Current Stock Price: $23.97
Cost Basis: $42.70
Action: Sell to open the RUN Feb Monthly (2/18) 30 Call
Current Option Price: $0.74-$0.80
Recommended Limit: Set your initial limit order at $0.77, but adjust as needed to sell a call today
New Cost Basis: $41.93
Expiration: After the close on Friday, Feb. 18
Potential Rate of Return: I am targeting breakeven for this position
SQSP Uncovered Shares
Current Stock Price: $30.84
Cost Basis: $41.60
Action: Sell to open the SQSP Feb Monthly (2/18) 35 Call
Current Option Price: $0.55-$0.90
Recommended Limit: Set your initial limit order at $0.70, but adjust as needed to sell a call today
New Cost Basis: $40.90
Expiration: After the close on Friday, Feb. 18
Potential Rate of Return: I am targeting breakeven for this position