The market continues to experience violent swings with a bias to the downside.
I waited to sell a call on CVS Health (CVS) in hopes that the federal government’s response to the coronavirus pandemic would trigger a bounce in the market. This has not come to pass, so I am recommending selling a call today.
Our Halliburton (HAL) position has been crushed by global growth fears and the price war between Saudi Arabia and Russia. With a turnaround in the energy sector highly unlikely in the foreseeable future, I am recommending we sell shares at a loss rather than continue to tie up capital.
I am recommending we roll our Nike (NKE) call and Roku (ROKU) bull put spread to avoid assignment.
Please use limit orders when managing open positions, as the spreads between the bid and the ask are wide. But adjust as needed to make sure the trades go off today.
CVS Uncovered Shares
Current Stock Price: $58.66
Cost Basis: $72.29
Action: Sell to open the CVS Mar Week Four (3/27) 60 Call for around $2.61, but adjust if needed to sell a call today
New Cost Basis: $69.68
HAL Uncovered Shares
Current Stock Price: $5.16
Cost Basis: $22.93
Action: Sell shares at market
Loss: $17.77, or $1,77 per 100 shares
NKE Mar Monthly (3/20) 95 Call
Current Stock Price: $69.60
Cost Basis: $98.19
- Buy to close the NKE Mar Monthly (3/20) 95 Call for around $0.05
- Sell to open the NKE Mar Week Four (3/27) 70 Call for around $5.45
- Set initial limit order at $5.40, but adjust if needed to roll today
New Cost Basis: $92.79
ROKU Mar Week Four (3/27) 75/70 Put Spread
Current Stock Price: $71.60
Net Debit: $3
- Buy to close the ROKU Mar Week Four (3/27) 75 Put for around $8.25
- Sell to close the ROKU Mar Week Four (3/27) 70 Put for around $5.65
- Set initial debit limit at $2.60
- Sell to open the ROKU Apr Monthly (4/17) 55 Put for around $3.60
- Buy to open the ROKU Apr Monthly (4/17) 50 Put for around $2.60
- Set initial credit limit at $1
New Net Debit: $4.60