I am recommending we sell a call on our uncovered Sonos (SONO) shares. The income we generate will reduce our cost basis on the position as we work our way toward breakeven.
Note that this trade is only for those who already own shares on SONO uncovered from a previous position.
Current Stock Price: $34.46
Cost Basis: $36.05
Action: Sell to open the SONO Nov Week One (11/5) 35 Call
Current Option Price: $0.40-$0.44
Recommended Limit: Set your initial limit order at $0.42, but adjust as needed to sell a call today
New Cost Basis: $35.63
Expiration: After the close on Friday, Nov. 5
Potential Rate of Return: I am targeting breakeven for this position