Squarespace (SQSP) appears to be stabilizing so it’s time to sell a call against our uncovered shares. The income we generate will reduce our cost basis.
Note that the spread between the bid and ask is wide, so you may need to work the trade to get in.
Also, note that this trade is only for people who already own SQSP shares from a previous position.
Current Stock Price: $34.39
Cost Basis: $44.60
Action: Sell to open the SQSP Dec Monthly (12/17) 35 Call
Current Option Price: $1.50-$2.85
Recommended Limit: Set your initial limit order at $2.15, but adjust as needed to sell a call today
New Cost Basis: $42.45
Expiration: After the close on Friday, Dec. 17
Potential Rate of Return: I am targeting breakeven for this position